A federal court just struck down Donald Trump’s $100,000 H-1B visa fee as an unlawful grab for Congress’s taxing power.
Quick Take
- A federal judge in Massachusetts vacated the $100,000 H-1B payment requirement nationwide.
- The court said the charge looked like a **tax**, not a normal fee.
- The ruling came from a lawsuit brought by 20 states led by California.
- A separate federal court in Washington, D.C., had already upheld the fee, so the issue is not settled.
Why the Court Rejected the Fee
U.S. District Judge Leo Sorokin ruled that the Trump administration went too far when it imposed the new H-1B payment. CBS News reported that the judge found the charge was a tax in substance, even if the White House called it a fee, and that Congress had not authorized it.[1] Reason also reported that the court treated the payment as a tax-like demand and said the president had not received taxing power from Congress.[2]
The decision matters because the Constitution gives Congress the power to tax, not the executive branch. That point will matter to readers who want clear limits on government power. The ruling also said the policy was unlawful under the Administrative Procedure Act, which gives courts power to set aside illegal agency action.[1][3] For many Americans, that is the core issue: when the executive starts acting like a tax collector, constitutional lines begin to blur.
How the $100,000 Charge Compared With Normal H-1B Costs
The size of the payment made the policy stand out immediately. Cornell’s fee breakdown shows ordinary H-1B filing costs in the low thousands, with totals around $2,010 for smaller employers and $3,380 for larger employers.[4] By contrast, the Trump administration’s proclamation added a $100,000 payment for each new H-1B petition, which made the charge look less like cost recovery and more like a major barrier to hiring foreign workers.[4]
USCIS guidance, as summarized by CDF Labor Law, said employers had to pay the extra $100,000 through the Treasury Department’s Pay.gov system.[3] That detail matters because it shows the money was not just a paperwork filing cost. Trump also described the fee in revenue terms, saying it could bring in “hundreds of billions of dollars,” according to reporting on his remarks.[2] That kind of language fed the court’s view that the payment functioned like a tax.[1][2]
What the Ruling Means for Employers and the Legal Fight
The lawsuit was brought by a coalition of 20 states led by California, which gave the challenge broad political weight.[1] CBS News reported that Judge Sorokin ordered the payment requirement to be set aside in its entirety.[1] That is a strong remedy, and it means the Massachusetts ruling does more than criticize the policy. It also blocks enforcement unless a higher court restores it.
"RESTORING PREDICTABILITY AND FAIRNESS": FIIDS WELCOMES COURT RULING STRIKING DOWN $100,000 H-1B VISA FEE
— RedboxGlobal India (@REDBOXINDIA) June 9, 2026
But the fight is not over. CUPA-HR reported that a federal court in the District of Columbia had already upheld the same proclamation, and that decision remains subject to appeal.[4] That split leaves employers, workers, and states in a cloud of uncertainty. For supporters of limited government, the larger lesson is simple: when Washington tries to use immigration policy as a back door to raise money, courts will be forced to ask whether Congress ever gave that power away.[2][4]
Sources:
[1] Web – Federal Court Invalidates Trump’s $100,000 H-1B Visa Fee as Ilegal …
[2] Web – Federal Court Upholds H-1B Visa $100,000 Fee Proclamation
[3] Web – Court Upholds $100000 Fee on H-1B Visas
[4] Web – USCIS Clarifies the $100,000 H-1B Visa Fee | CDF Labor Law LLP
