H-1B $100,000 fee struck down; White House vows appeal

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H-1B $100,000 fee struck down; White House vows appeal

Synopsis

A federal judge has vacated Trump's $100,000 H-1B fee nationwide, calling it an unconstitutional tax imposed without Congress's approval. With the White House vowing appeal and a conflicting ruling already on the books in Washington, this legal battle is far from over — and its outcome will shape the cost of hiring skilled foreign workers in the US for years.

Key Takeaways

US District Judge Leo T.
Sorokin of Massachusetts struck down President Trump's $100,000 H-1B visa fee on 9 June , vacating it nationwide.
The judge ruled the fee constitutes an unlawful tax imposed without congressional authorisation, citing INA § 212(f) and 215(a) .
The policy originated from a Trump proclamation signed in September 2025 requiring employers to pay $100,000 per new H-1B petition.
The White House vowed to appeal, noting a separate federal judge in Washington had upheld a nearly identical order.
Employers are not required to pay the fee pending appeal; legal uncertainty continues for H-1B-dependent industries.

A US federal judge on 9 June struck down President Donald Trump's $100,000 H-1B visa fee, ruling that the administration had exceeded its authority and imposed an unlawful tax without congressional approval — and the White House swiftly vowed to appeal the decision. The ruling, which vacates the policy nationwide, delivers a significant legal setback to one of Trump's most aggressive immigration enforcement measures.

The Court's Ruling

US District Judge Leo T. Sorokin of Massachusetts invalidated the policy in a sharply worded order, concluding that the administration had imposed a tax on H-1B petitions without the required delegation from Congress. 'The Court finds that the Policy imposes a tax on H-1B petitions without the requisite delegation by Congress,' Sorokin wrote. 'There are no statutory powers authorizing Defendants to implement a $100,000 tax on H-1B petitions.'

The judge rejected the administration's reliance on broad presidential immigration powers, noting that executive discretion 'may not transgress constitutional limitations' or 'the statutory authority conferred by Congress.' Sorokin specifically found that immigration statutes — including INA § 212(f) and 215(a) — did not confer authority on the President to impose such a charge, as these provisions could not be read as delegating Congress's exclusive power to tax.

The court also criticised the agencies that implemented the policy, finding they had bypassed required rulemaking procedures and failed to adequately justify the fee. At the conclusion of the ruling, Sorokin declared the policy 'unlawful' and vacated it 'in its entirety.'

What the White House Said

The administration pushed back forcefully within hours of the ruling. White House spokeswoman Taylor Rogers said: '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.' Rogers added that 'a federal judge in Washington already upheld a nearly identical order,' expressing confidence that the ruling would be reversed on appeal.

Rogers also defended the underlying policy rationale: 'The H-1B program has been abused for decades, and President Trump finally took action to fix it.' The White House did not specify a timeline for filing the appeal.

Background: The $100,000 Fee Proclamation

The contested policy stems from a proclamation signed by Trump in September 2025, which required employers filing new H-1B petitions to pay an additional $100,000 per application. The measure was framed as part of a broader effort to tighten oversight of the H-1B programme, which the administration has repeatedly characterised as susceptible to misuse by large outsourcing firms at the expense of American workers.

Notably, the administration cited a separate ruling by a federal judge in Washington that upheld a nearly identical order, setting up a potential circuit split that could eventually reach higher courts. This is the latest in a series of legal challenges to Trump's immigration agenda, several of which have produced conflicting lower-court outcomes.

Impact on Employers and Skilled Workers

The H-1B visa programme is widely used by Indian technology professionals and by US employers — particularly in the IT, engineering, and healthcare sectors — to hire skilled foreign workers. A $100,000 fee would have substantially raised the cost of sponsoring such workers, disproportionately affecting smaller firms and startups that rely on the programme.

With the policy now vacated nationwide, employers are not required to pay the additional fee pending the outcome of any appeal. However, legal uncertainty is expected to persist as the administration pursues higher courts. Industry groups and immigration lawyers are monitoring the appeal timeline closely.

What Comes Next

The administration has signalled it will continue defending the measure, though no appeal date has been announced. Given the conflicting lower-court rulings, legal experts expect the case to move through the appellate circuit and potentially set a precedent on the limits of presidential authority over immigration-related fees. The outcome will have direct consequences for thousands of employers and skilled workers navigating the H-1B system each year.

Point of View

Not taxation. The administration's reference to a conflicting Washington ruling is a deliberate signal that it is building toward a circuit split, which would accelerate Supreme Court review. For Indian IT professionals and the outsourcing industry, the real risk is not this ruling but the prolonged uncertainty it creates — even a vacated policy chills hiring decisions when an appeal is pending.
NationPress
24 Jul 2026

Frequently Asked Questions

What was Trump's $100,000 H-1B fee and why was it struck down?
President Trump's September 2025 proclamation required employers filing new H-1B petitions to pay an additional $100,000 per application. A federal judge struck it down on 9 June, ruling it was an unconstitutional tax imposed without congressional authorisation.
Who issued the ruling against the H-1B fee?
US District Judge Leo T. Sorokin of Massachusetts issued the ruling, declaring the policy unlawful and vacating it nationwide. He found that the immigration statutes cited by the administration did not grant the President authority to impose such a charge.
Will the $100,000 H-1B fee still apply to employers?
No. The policy has been vacated nationwide, meaning employers are not required to pay the additional $100,000 fee while the ruling stands. However, the White House has vowed to appeal, so the legal situation remains fluid.
What is the White House's response to the ruling?
White House spokeswoman Taylor Rogers defended the policy, saying Trump has 'clear legal authority to restrict entry of any class of aliens he determines is not in America's best interests.' The administration expressed confidence the ruling would be reversed on appeal and pointed to a separate Washington court that upheld a nearly identical order.
How does this ruling affect Indian H-1B visa holders and applicants?
Indian nationals are among the largest beneficiaries of the H-1B programme. With the fee vacated, the cost of sponsorship returns to pre-proclamation levels for now. However, the ongoing legal battle creates uncertainty for employers and prospective applicants planning long-term hiring decisions.
Nation Press
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