US judge blocks Trump’s $100,000 fee for H-1B visas

A U.S. federal judge has halted President Donald Trump's administration from implementing a controversial $100,000 fee for employers seeking H-1B visas for highly skilled foreign workers. District Judge Leo Sorokin ruled that the fee, announced in September, constituted an unlawful tax and overstepped the executive branch's authority, encroaching on powers reserved for Congress.

In his 42-page ruling, Sorokin stated, "The substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called." He emphasized that the President lacked the "power or delegated authority to impose a tax on H-1B petitions." This decision came in response to a lawsuit filed by 20 Democratic-led states, challenging the legality of the fee.

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

This ruling contrasts with a December decision by a different federal judge who upheld the fee in a separate case brought by the U.S. Chamber of Commerce and the Association of American Universities. That decision is currently under appeal. The Trump administration had argued that the fee was necessary to combat the abuse of the H-1B visa system, which they claimed was used to replace American workers with cheaper foreign labor.

The H-1B visa program is a cornerstone for the U.S. technology sector, awarding 85,000 visas annually through a lottery system. India is the largest beneficiary, accounting for approximately three-quarters of recipients. Previously, H-1B visa fees ranged up to $5,000. Tech leaders, including figures like Elon Musk, had warned that restricting H-1B visas could harm the industry by exacerbating a shortage of domestic talent in critical tech roles.

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The President had no power or delegated authority to impose a tax on H-1B petitions.