A U.S. federal court has struck down a controversial policy introduced during Donald Trump’s presidency that required employers to pay an annual fee of $100,000 to hire foreign workers under the H-1B visa program.
U.S. District Judge Leo Sorokin in Boston ruled that the fee was unlawful, determining that it amounted to a tax imposed without congressional approval. According to Reuters, the court found that the executive branch had exceeded its authority by implementing the measure without authorization from Congress, which holds the constitutional power to levy taxes.
The lawsuit was filed by attorneys general from 20 Democratic-led states, who argued that the policy would harm their economies by restricting access to highly skilled foreign workers. They noted that sectors such as technology, healthcare, and research rely heavily on the H-1B visa program to address labor shortages and maintain global competitiveness.
The Trump administration announced the fee in September, describing it as a lawful penalty intended to discourage companies from hiring foreign workers over U.S. citizens. Officials argued that the president had authority under immigration law to restrict the entry of foreign nationals deemed harmful to national interests.
However, Judge Sorokin rejected this argument, ruling that the fee was, in substance, a tax rather than a penalty. He emphasized that the president does not have unilateral authority to impose such a tax. The court also held that federal agencies, including the U.S. Department of State and U.S. Citizenship and Immigration Services (USCIS), lacked the legal basis to enforce the measure.
In his ruling, Sorokin cited a February decision by the U.S. Supreme Court that struck down certain tariffs imposed under emergency powers. He relied on that precedent to highlight the limits of executive authority in economic matters, concluding that immigration law does not grant the president the power to impose taxes.
The H-1B visa program allows U.S. employers to hire highly skilled foreign professionals, particularly in fields such as information technology, engineering, and medicine. The program provides 65,000 visas annually, along with an additional 20,000 for individuals holding advanced degrees from U.S. institutions. These visas are typically valid for three to six years.
Before the introduction of the $100,000 fee, employers generally paid between $2,000 and $5,000 in application-related fees. The sharp increase drew widespread criticism, particularly from small and mid-sized businesses, which argued that the policy was financially burdensome and impractical.
Government data suggests that the policy saw minimal use. As of February 15, only 85 visas had been issued under the $100,000 fee structure, raising questions about its effectiveness.
The ruling is expected to provide relief to employers and institutions that depend on global talent, while also reaffirming constitutional limits on executive authority in shaping immigration and economic policy.
