A federal judge has struck down a $100,000 fee imposed by President Donald Trump on new H-1B visas for highly skilled foreign workers, ruling it an unlawful tax that Congress never authorized.
The decision, issued by U.S. District Judge Leo Sorokin in Boston, stems from a lawsuit brought by 20 Democratic state attorneys general challenging the significantly increased cost of obtaining these visas.
The H-1B program grants 65,000 visas annually, with an additional 20,000 for workers holding advanced degrees, typically approved for three to six years.
Prior to Trump’s proclamation, employers seeking a visa for a foreign worker usually paid between $2,000 and $5,000 in fees depending on various factors.
Court filings indicate that the substantial fee increase discouraged H-1B visa requests. As of February 15, U.S. Citizenship and Immigration Services had received only 85 payments of the $100,000 fee, according to a March administration filing.
The administration had argued the fee was a monetary penalty, lawfully imposed under federal immigration law to restrict the entry of certain foreign nationals.
However, Judge Sorokin, an appointee of Democratic President Barack Obama, concluded that the payment was not a penalty but a tax for which Donald Trump lacked any Congressional authorization.
“Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called,” he wrote.
The judge cited the U.S. Supreme Court’s February ruling striking down Trump’s sweeping tariffs he pursued under a law meant for use in national emergencies. Under the logic of the justices’ decision in that case, Trump similarly had no authority under immigration law to levy a tax, Sorokin said.
White House spokeswoman Taylor Rogers in a statement said the Trump administration is confident Sorokin’s order 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 Trump administration has also ordered enhanced vetting of H-1B applicants and proposed a new visa selection process that would favor higher-skilled and better-paid workers.
The $100,000 fee prompted at least three different lawsuits challenging its implementation, including a case by the U.S. Chamber of Commerce, which is appealing a December decision by a judge in Washington, D.C., who rejected its claims that Trump had no authority to set the fee.
