A federal judge has struck down President Donald Trump’s $100,000 fee for H-1B visa applications, ruling it acts as an unlawful tax that Trump does not have the authority to impose. The decision creates immediate uncertainty for employers and practitioners, because a judge in Washington, D.C. previously ruled in December that Trump did have the authority to impose the fee and appeals are pending.
What changed
U.S. District Judge Leo Sorokin in Boston vacated “in its entirety” the Trump Administration’s policy from September that raised the cost for companies applying for an H-1B petition from a few thousand dollars to more than $100,000. The judge ruled that the fee acts as an unlawful tax that Trump does not have the authority to impose.
Judge Sorokin agreed that “the substance and application of the $100,000 payment reveal that it is a tax,” and that Congress had not delegated that power to the executive branch. The judge cited the Supreme Court’s February opinion striking down Trump’s “reciprocal” tariffs on imports because he lacked the legal authority to unilaterally impose them.
The Trump Administration had announced the fee in a proclamation in September, claiming that the H-1B program “has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor.” A coalition of 20 Democratic state attorneys general filed the lawsuit in December challenging the policy change.
Why it matters
The Sorokin ruling vacates the fee outright. Prior to the change, companies typically paid between $2,000 and $5,000 to apply for an H-1B. If the judgment stands, those historical fee levels would apply to new petitions going forward.
However, the policy is far from settled. The Trump administration said it would appeal the ruling. There is an ongoing appeals case by the U.S. Chamber of Commerce after a judge in Washington, D.C. ruled in December that Trump did have the authority to impose the fee. This means practitioners now face conflicting authority in two circuits and cannot safely advise clients that the fee is gone for good.
While the fee did not apply to foreign nationals already in the U.S. on student visas or existing H-1B holders, some foreign nationals found their employment offers withdrawn or faced hiring freezes during the initial uncertainty around the policy. The Trump Administration began carving out exemptions for doctors and medical residents after healthcare employers complained. By mid-February, U.S. Citizenship and Immigration Services had received only 85 payments of the fee, according to a March filing.
Way forward
- Check USCIS fee pages and Form I-129 instructions immediately to see whether USCIS has updated guidance on the $100,000 fee pending the appeal. The agency may continue to collect the fee despite the vacatur, or may reinstate the old schedule.
- Advise H-1B sponsor clients conservatively: clarify in writing which fee schedule will apply and when it applies, because the litigation is unresolved.
- Monitor the appeal calendar for updates from the U.S. Circuit Court of Appeals; a reversal of Sorokin’s decision is possible.
- For petitions in flight: reach out to the service center to determine current billing practice and whether fee adjustments or refunds apply to pending cases.
Disclaimer
This article is not legal advice. It is provided for informational purposes only and should not be construed as legal counsel. Fola is a software company, not a law firm. Please consult a licensed immigration attorney regarding your specific circumstances and to verify this information against the primary source linked above. Immigration policy can change without notice; always confirm current rules with official USCIS and DOS guidance before filing or advising clients.