A federal judge on Monday invalidated President Trump’s policy imposing a $100,000 fee on new H-1B visas for high-skilled foreign workers, finding it unlawful. 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. The ruling has immediate implications for employers and immigration practitioners managing H-1B petitions.
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, regardless of what the payment is called,” and found that “there are no statutory powers authorizing [the Trump administration] to implement a $100,000 tax on H-1B petitions.”
Trump signed a proclamation last year that added a $100,000 payment to all new H-1B applications, and USCIS said in October the $100,000 fee applied to new applications filed on or after Sept. 21, just two days after Mr. Trump announced the new policy. The agency clarified that the fee would only apply to new applicants living abroad, and not renewals.
The judge ordered the required visa payment to be set aside in its entirety, relief that is allowed under a federal law called the Administrative Procedure Act.
Why it matters
This ruling eliminates the $100,000 fee prospectively and retroactively. Employers seeking a visa for a foreign worker before Trump’s proclamation typically paid about $2,000 to $5,000 in fees, depending on various factors. The sudden fee increase had dramatic consequences: As of February 15, US Citizenship and Immigration Services had received just 85 payments of the $100,000 fee.
The ruling turns on a separation-of-powers principle: the judge found that the President cannot unilaterally impose what amounts to a tax without Congressional authorization, even in the immigration context. US District Judge Leo Sorokin said that only Congress had the power to change federal immigration policy to include such a requirement, which he viewed as a tax, and that lawmakers had not given the executive branch permission to unilaterally make the change.
Practitioners and employers should understand this affects cost projections for pending and future H-1B petitions. Fee-dependent business decisions (whether to pursue H-1B sponsorship, timing of filings) can now revert to pre-proclamation models.
Way forward
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Verify current fee schedules immediately. Contact USCIS and check myUSCIS for any interim guidance on fee processing for petitions filed during the fee period. Clarify which petitions should be refunded or had fees waived.
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Review pending H-1B petitions. If you filed during the Sept. 21 – June 8 window and paid the $100,000 fee, document the payment and monitor USCIS communications for instructions on reimbursement or fee waiver.
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Expect a government appeal. The Department of Homeland Security called Sorokin’s decision “blatant judicial activism” in a statement and defended the Trump administration’s immigration reforms. The administration is likely to appeal; the ruling is not final during the appellate process.
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Plan H-1B strategy on the 2–5K fee baseline. Until or unless the ruling is reversed on appeal, budget for traditional H-1B filing costs and advise clients accordingly.
Disclaimer
This article summarizes a federal court decision and is not legal advice. Fola is a software and publishing company, not a law firm. Immigration law and policy can change without notice, and court decisions may be appealed or reversed. Always verify the current status of any fee requirement with USCIS official guidance and consult a licensed immigration attorney before filing.