Judge strikes down Trump's $100,000 H-1B visa fee as unlawful tax

A federal judge in Boston has struck down a $100,000 fee that former President Donald Trump had imposed on new H-1B visas for highly skilled foreign workers. U.S. District Judge Leo Sorokin ruled on Monday that the fee constituted an unlawful tax, lacking authorization from Congress.

The lawsuit was filed by 20 Democratic state attorneys general who challenged the fee, announced in September, which significantly increased the cost of obtaining H-1B visas. These visas are crucial for U.S. tech companies relying on foreign talent. The administration had argued the fee was a lawful monetary penalty, citing federal immigration law that grants the president power to restrict foreign nationals deemed "detrimental to the interests of the United States."

However, Judge Sorokin concluded that the fee was indeed a tax, not a penalty, and that Trump lacked the authority to impose it. He referenced a February Supreme Court ruling that invalidated Trump's tariffs imposed under a national emergency law, applying similar logic to the H-1B visa fee. "Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called," Sorokin wrote.

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Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called.

A White House spokeswoman, Taylor Rogers, stated that the Trump administration is confident the ruling will be reversed on appeal. "President Trump has clear legal authority to restrict entry of any class of aliens he determines is not in America’s best interests, and that is exactly what he did," she said. The H-1B program typically offers 65,000 visas annually, with an additional 20,000 for advanced degree holders. Before Trump's proclamation, employers paid fees ranging from $2,000 to $5,000.

Trump had justified the hefty fee by stating the H-1B program was "deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor." The fee did not apply to individuals switching from student visas. Since its implementation, few employers have paid the fee; as of February 15, only 85 payments had been received by USCIS. The administration had also pursued enhanced vetting and a new selection process favoring higher-skilled workers.

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President Trump has clear legal authority to restrict entry of any class of aliens he determines is not in America’s best interests, and that is exactly what he did.