A federal court has struck down the Trump administration’s $100,000 fee on new H-1B visa petitions, eliminating a significant barrier for employers seeking to hire specialty workers. US District Judge Leo T. Sorokin concluded that the Trump administration lacked authority to impose the fee and that Congress had not delegated taxing powers to the executive branch for H-1B petitions. The court subsequently vacated the policy nationwide.
What changed
U.S. District Judge Leo T. Sorokin ruled that the Trump administration lacked statutory authority to impose the $100,000 fee on H-1B petitions, and the court vacated the policy nationwide. The ruling means employers must no longer pay this fee when filing new H-1B petitions or cap-exempt petitions. Democratic lawmakers, state officials and policy advocates welcomed the decision, calling it a victory for employers, healthcare providers, universities and the US economy.
The decision emerged from a federal lawsuit challenging the fee’s legality. Indian American Congressman Raja Krishnamoorthi called the decision “a welcome rejection of an unlawful policy that threatened America’s economic competitiveness and made it harder for businesses, hospitals, universities, and research institutions to attract the high-skilled talent they need to succeed.”
Why it matters
If the fee had remained in place, employers would have faced a substantial cost increase on every H-1B petition filed. The elimination of this fee immediately reduces the financial burden of hiring specialty workers and restores predictability to the employment authorization process.
The Foundation for India and Indian Diaspora Studies (FIIDS) welcomed the ruling, saying it restores predictability and fairness to the employment-based immigration system. The decision is particularly significant because Indian nationals receive the overwhelming majority of H-1B visas issued each year, making the fee reduction especially meaningful for technology companies, healthcare systems, and universities that depend on this talent pipeline.
The decision underscores the importance of ensuring major immigration policy changes are grounded in statutory authority and economic realities. For practitioners, the ruling clarifies that executive branch fees must have clear congressional authorization.
Way forward
- Do not include the $100,000 fee when calculating the cost of an H-1B petition filing. USCIS filing fee schedules should reflect only legitimate, authorized charges.
- Review pending H-1B receipts. If you filed petitions during the period the fee was in effect and USCIS charged this fee, consider whether a refund request is appropriate under the court’s vacatur.
- Notify your clients. Employment sponsors should be informed that the fee has been eliminated and that their H-1B filing costs have been reduced.
- Monitor appellate developments. The White House signaled it will challenge the ruling, so practitioners should monitor further court filings in case the decision is appealed or modified.
Disclaimer
This article summarizes a federal court decision and policy development. It is not legal advice. Immigration law is complex and fact-specific; you should consult a licensed immigration attorney to determine how this ruling applies to your specific situation. This article was prepared by a software company, not a law firm. Policy and case law can change without notice; verify all information against the primary source linked above and current USCIS guidance before relying on it in client matters.