A federal judge ruled Monday that a Trump administration initiative to impose $100,000 fees on employers seeking visas for skilled foreign workers amounts to an unlawful tax on those companies and must be voided “in its entirety.” U.S. District Judge Leo Sorokin ruled in favor of a group of 20 states that challenged the new fee announced by Mr. Trump in September.
What changed
The judge found that the Trump administration overstepped its authority by imposing a $100,000 tax on H-1B applications without authorization from Congress. Sorokin wrote that “the substance and application of the $100,000 payment reveal that it is a tax,” and found that Congress had not delegated that power to the executive branch.
USCIS had announced in October that the $100,000 fee applied to new applications filed on or after September 21, and clarified that the fee would only apply to new applicants living abroad, and not renewals. That fee structure is now void across the board.
The policy implementing the large fees on high-skilled worker visas violated the federal Administrative Procedure Act and the Constitution, Judge Leo Sorokin declared in the ruling in U.S. District Court in Boston. In a 42-page opinion, Sorokin acknowledged that the policy appeared to step on Congress’ “exclusive power” to levy taxes under the Constitution.
Why it matters
This ruling immediately rescinds the $100,000 fee and restores the prior H-1B fee structure. Prior to the change, H-1B visa fees had ranged from $2,000 to $5,000 per application. Your clients and their employers can now proceed with H-1B filings at the original cost level.
The decision resolves a split in the federal judiciary. Judge Beryl Howell, an appointee of Barack Obama, had reached the opposite conclusion in a different case, allowing the administration to move forward with the visa fee. But Sorokin, also an Obama appointee, wrote that the Supreme Court has maintained throughout several cases that the president can only impose a tax or penalty when explicitly authorized by Congress.
The practical impact is significant: several companies, including Walmart, had said that they would pause their participation in the H-1B program as a result of Trump’s proclamation. With the fee voided, those employers may resume or expand H-1B hiring.
Way forward
- Advise employers immediately that the $100,000 fee is no longer enforceable. If they paid the fee on any application filed between September 21, 2025, and the court’s June 8, 2026 order, they may be entitled to a refund; confirm via USCIS guidance or contact your local USCIS office.
- Recalibrate H-1B filing timelines and budgets based on the original fee schedule ($1,700–$4,500 per petition). If you had deferred filings due to cost, reassess your client’s petition strategy now.
- Monitor for appeal. The Trump administration plans to appeal the ruling. While the fee is void as of June 8, 2026, an appellate reversal remains possible; keep your clients informed of any further developments.
- Review any pending filings that may have been held up by the fee policy. You may be able to proceed with lower cost and renewed business justification.
Disclaimer
This article summarizes a court decision and does not constitute legal advice. Folaform is a software company, not a law firm. Consult a licensed immigration attorney in your jurisdiction to discuss how this ruling applies to your specific situation. Immigration policy and court decisions can change rapidly; verify all information against the primary source and current USCIS guidance before advising a client or filing a petition.