WASHINGTON: A US federal judge has struck down a Trump administration policy that sought to impose a $100,000 charge on every new H-1B visa application, ruling that the measure amounted to an illegal tax.
The fee, introduced by US President Donald Trump in September 2025, was intended to apply to H-1B visas, which allow American employers to hire foreign professionals in specialised fields such as science, engineering and information technology.
Federal Judge Leo Sorokin ruled that the administration lacked the authority to impose the charge because only Congress can create new taxes. He concluded that the government could not avoid constitutional limits by describing the levy as a “fee” or “penalty”.
The ruling followed a lawsuit brought by 20 Democratic state attorneys general, who argued that the measure would significantly hinder the ability of public institutions, including universities, schools and hospitals, to recruit skilled international workers.
The Trump administration had maintained that the president possessed the authority to introduce the fee under immigration enforcement powers and broader efforts to restrict certain forms of foreign entry into the United States. The court, however, rejected that justification.
Under the existing H-1B programme, employers typically pay several thousand dollars in filing and processing fees for each application. The proposed $100,000 charge represented a dramatic increase and was widely viewed as a substantial obstacle to hiring foreign talent.
The H-1B system currently permits 65,000 new visas annually, along with an additional 20,000 visas for applicants holding advanced degrees.
Court documents showed that only around 85 employers had paid the fee before legal challenges effectively halted its implementation. The ruling now prevents the administration from enforcing the measure.
