A federal judge has struck down the $100,000 fee that President Donald Trump imposed on new H-1B visas for highly skilled foreign workers, concluding that it constituted an unlawful tax that Congress never authorised, in a ruling issued in Boston on Monday by US District Judge Leo Sorokin in a lawsuit filed by 20 Democratic state attorneys general.
What changed
In September, Trump signed a proclamation adding a $100,000 fee for new H-1B visa applications. 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 judge concluded that the fee was not a penalty but a tax that the president lacked any authorisation from Congress to issue. In a 42-page decision, 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”.
The judge cited the Supreme Court’s opinion in February striking down Trump’s “reciprocal” tariffs on imports because he lacked the legal authority to unilaterally impose them, noting that the high court ruled that tariffs assessed by the Department of Homeland Security “amount to taxes for the purposes of the Constitution’s Taxing Clause”.
Why it matters
For H-1B practitioners and sponsoring employers, this ruling immediately changes cost planning. The increase in fees has discouraged H-1B visa requests; as of February 15, US Citizenship and Immigration Services had received just 85 payments of the $100,000 fee, according to the administration. If the ruling holds on appeal, employers can revert to the traditional fee schedule (roughly $2,000–$5,000) and applicants face substantially lower costs.
However, the ruling is not final. The Trump administration said it would appeal the ruling. The $100,000 fee prompted at least three separate lawsuits challenging its implementation, including a case by the US Chamber of Commerce, which is appealing a December decision by a judge in Washington, DC, who rejected its claims that Trump had no authority to set the fee. This signals that federal courts remain divided on the president’s authority, so the fee could be reinstated if an appellate court reverses.
Way forward
- Verify current fee requirements with USCIS: Check myUSCIS.com and official USCIS fee guidance to confirm whether the $100,000 fee applies to filings submitted today. The agency may issue updated guidance while the appeal is pending.
- Advise clients on interim exposure: Explain to H-1B sponsors that while this Boston decision voids the fee, a parallel appeal (or reversal on appeal) could revive it. Quote the lower-fee schedule provisionally and flag the appellate timeline.
- Monitor the appeal: Track the US Court of Appeals decision (likely First Circuit). If the Trump administration wins, the fee would be reinstated; if it loses, the ruling stands.
- Document fee disputes: If a client has already paid the $100,000 fee under protest or is in pending proceedings, preserve records for potential refund claims once appellate litigation concludes.
Disclaimer
This article is informational only and does not constitute legal advice. Immigration policy and court rulings can change without notice. You should verify all information against the primary source linked above and consult a licensed immigration attorney before making filing decisions or advising clients. Fola is a software company, not a law firm.