Washington: A US federal court has struck down former President Donald Trump’s policy imposing a $100,000 fee on new H-1B visa applications, ruling that the measure was unlawful and exceeded presidential authority.
US District Judge Leo Sorokin of Massachusetts held that the fee functioned as a tax rather than a regulatory charge. Under the US Constitution, the power to impose taxes rests with Congress, not the President. Therefore, the administration lacked the legal authority to implement the measure without congressional approval.
The lawsuit was brought by attorneys general from 20 Democratic-led states, who argued that the fee, announced in September 2025, would place an excessive financial burden on employers seeking to hire highly skilled foreign workers and would undermine industries that rely on global talent.
In his ruling, Judge Sorokin stated that the administration’s justification for the fee did not alter its fundamental nature as a revenue-generating tax. As such, it could not be imposed through executive action alone.
The Trump administration had defended the policy as a means of protecting American jobs and reducing employers’ reliance on foreign labor. Officials argued that the H-1B visa program was being used to replace US workers with lower-cost foreign professionals. However, the court rejected those arguments in its decision.
The H-1B visa program allows US employers to hire foreign professionals in specialty occupations, particularly in technology, healthcare, research, engineering, and higher education. Indian professionals account for the largest share of H-1B visa recipients each year.
The ruling is being viewed as a significant victory for the technology sector, universities, healthcare institutions, and businesses that depend on highly skilled international workers. The White House has indicated that it may appeal the decision.