US Court Blocks Trump’s $100,000 H-1B Visa Fee, Calls It Unlawful Tax

A US federal judge has halted President Donald Trump’s controversial plan to impose a $100,000 fee on employers seeking to sponsor highly skilled foreign workers under the H-1B visa programme.

District Judge Leo Sorokin issued the ruling on Monday in a case brought by 20 Democratic-led states, concluding that the measure exceeded presidential authority and amounted to an illegal tax.

In his 42-page decision, Sorokin wrote: “The substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called.”

He further stated: “The President had no power or delegated authority to impose a tax on H-1B petitions.”

The H-1B programme, which allocates 85,000 visas annually through a lottery system, is heavily used by the US tech sector, with Indian professionals making up around three-quarters of recipients.

Trump announced the policy in September, arguing that the visa system was being exploited to replace American workers with lower-cost foreign labour. The fee increase formed part of a broader immigration crackdown since his return to the White House.

The decision marks a setback for the policy, although a separate federal ruling in December upheld the fee in a different lawsuit filed by the US Chamber of Commerce and the Association of American Universities. That case is now under appeal.

Previously, employers paid up to $5,000 for H-1B applications.

The proposal had sparked concern across the technology industry, with critics—including entrepreneur Elon Musk—warning that tightening skilled migration rules could weaken the United States’ ability to fill critical tech talent gaps.

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