BOSTON — A U.S. federal judge has invalidated the Trump administration’s controversial $100,000 fee on new H-1B visa applications, ruling that the charge constituted an unlawful tax imposed without the necessary authorization from Congress.
U.S. District Judge Leo T. Sorokin of Massachusetts issued the 42-page ruling on Monday, June 8, 2026, following a legal challenge led by a coalition of 20 state attorneys general. The court’s decision effectively vacates the policy, which had been implemented by presidential proclamation last September.
“An Unlawful Tax”
The central argument in the ruling was the constitutional separation of powers. While the Trump administration contended that the fee was a regulatory penalty designed to restrict the entry of certain foreign nationals under the Immigration and Nationality Act, Judge Sorokin rejected this classification.
“Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called,” Judge Sorokin wrote. He emphasized that under the U.S. Constitution, the exclusive authority to levy taxes rests with Congress, not the executive branch.
The court further noted that the policy was implemented without the required “notice-and-comment” process mandated by the Administrative Procedure Act, and that the administration failed to consider the significant negative impact on sectors—such as healthcare, education, and technology—that rely on skilled foreign labor to address critical workforce shortages.
A Reprieve for Employers
The $100,000 fee, which represented a massive increase from the previous administrative costs of roughly $2,000 to $5,000, had created a prohibitive barrier for many employers. Court records indicated that only about 85 such payments were made before the fee was challenged and effectively halted.
New York Attorney General Letitia James, among others who led the multi-state lawsuit, welcomed the decision, stating that the ruling protects vital sectors that rely on international talent, including doctors, researchers, and teachers.
Next Steps: Likely Appeal
The Trump administration has signaled its intent to appeal the ruling. White House spokesperson Taylor Rogers asserted that President Trump possesses the legal authority to restrict the entry of any class of aliens deemed contrary to the national interest.
Given that other federal courts have previously issued conflicting rulings on the extent of presidential authority regarding immigration and economic restrictions, legal experts anticipate that this issue may eventually reach the U.S. Supreme Court. For now, however, the invalidation of the fee provides significant relief to businesses and institutions across the United States.
