USCIS policy update

Federal Judge Voids Trump's $100,000 H-1B Visa Fee as Unlawful Tax

A Boston federal judge ruled that Trump's $100,000 H-1B visa fee is an unlawful tax Congress never authorized. The ruling blocks enforcement; the administration plans to appeal.

A federal judge in Boston has blocked enforcement of the $100,000 application fee for H-1B visas, ruling that President Trump lacked legal authority to impose what amounts to an unlawful tax. The decision creates immediate uncertainty about the fee’s status—though the Trump administration has announced its plan to appeal.

What changed

U.S. District Judge Leo Sorokin struck down the $100,000 fee Trump imposed on new H-1B visas, concluding it constituted an unlawful tax Congress never authorized. The ruling came in a lawsuit filed by 20 Democratic state attorneys general challenging the fee Trump announced in September.

Sorokin declared the visa payment policy violated the Administrative Procedure Act and the Constitution. “Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called,” he wrote, concluding that the fee was not a penalty but a tax that the Republican president lacked authorization from Congress to issue.

Sorokin said only Congress had the power to change federal immigration policy to include such a requirement, and that lawmakers had not given the executive branch permission to unilaterally make the change. The judge cited the U.S. Supreme Court’s February ruling striking down Trump’s sweeping tariffs pursued under a law meant for use in national emergencies, and said that under the logic of that decision, Trump similarly had no authority under immigration law to levy a tax.

The $100,000 fee prompted at least three different lawsuits challenging its implementation, including a case by the U.S. Chamber of Commerce, which is appealing a December decision by a judge in Washington, D.C., who rejected its claims that Trump had no authority to set the fee.

Why it matters

If the ruling holds on appeal, the $100,000 fee is unenforceable—meaning employers can file H-1B petitions at the traditional fee level of roughly $2,000 to $5,000, compared to what employers typically paid before Trump’s proclamation. However, the ruling is not final. White House spokeswoman Taylor Rogers stated in a statement that the Trump administration is confident Sorokin’s order will be reversed on appeal.

For practitioners, the key takeaway is immediate ambiguity. You face two competing questions:

  • For pending cases: Should you file H-1B petitions now at the lower pre-proclamation fee, or wait to see if the fee is reinstated on appeal?
  • For cases filed under the $100,000 fee: Are those filings refundable or do they stand? The ruling itself doesn’t address retroactivity.

The Trump administration has also ordered enhanced vetting of H-1B applicants and proposed a new visa selection process that would favor higher-skilled and better-paid workers, which remain in effect and separate from the fee question.

Way forward

  1. Do NOT advise clients that the fee is permanently gone. The ruling blocks current enforcement, but the Trump administration has explicitly said it will appeal. The fee could be reinstated if the appeals court reverses.

  2. Check USCIS guidance urgently. USCIS has not yet issued a policy memo clarifying whether new H-1B filings should be processed under the old or new fee schedule, or what happens to filings made under the $100,000 fee. Monitor the USCIS newsroom and the Federal Register for updated procedures.

  3. Request refunds cautiously. If you filed H-1B petitions and paid the $100,000 fee after Trump’s September 2025 proclamation, flag those cases for potential refund eligibility—but do not file refund requests until USCIS or a final court order clarifies the process.

  4. Track the parallel litigation. The U.S. Chamber of Commerce is appealing a separate adverse decision in the D.C. District Court. If that case reverses Sorokin’s reasoning, the fee may be upheld on different legal grounds. Monitor both the First Circuit (which would hear the appeal of Sorokin’s decision) and D.C. Circuit dockets.

Disclaimer

This article is provided for informational purposes and is not legal advice. Fola is a software company, not a law firm. Immigration law is complex, and visa policy can change without notice. You should consult a licensed immigration attorney to discuss your specific situation and verify all information against the primary sources, including the full text of Judge Sorokin’s decision and any updated USCIS guidance. The Trump administration’s stated intent to appeal means the legal status of this fee remains in flux.

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