US Judge Rules Trump’s $100,000 H-1B Visa Fee an Illegal Tax

A federal judge in Boston has ruled that the $100,000 fee imposed by President Donald Trump on H-1B visas for skilled foreign workers is an illegal tax, lacking the congressional authorisation required under the US Constitution. The decision, handed down by District Judge Leo Sorokin on Monday, came in response to a lawsuit filed by Democratic attorneys general from 20 states. It directly contradicts an earlier federal court ruling that had upheld the fee, setting the stage for a protracted legal battle. The White House immediately announced it would appeal, expressing confidence that the ruling would be overturned. [A1][A2][A10][A11][A12][A14]

Trump introduced the fee by proclamation in September 2025, arguing that the H-1B programme was being abused to replace American workers with cheaper foreign labour. Before the change, employers typically paid between $2,000 and $5,000 in government charges per visa, including a $215 registration fee and a $780 application fee. The new $100,000 levy represented an extraordinary increase, effectively pricing out many smaller firms and non-profits. The H-1B programme, which covers specialty occupations in technology, medicine, engineering and science, has an annual cap of 65,000 regular visas plus 20,000 for advanced degree holders from US institutions. Indian nationals account for nearly 70 per cent of beneficiaries, making the fee a matter of acute concern in New Delhi and among the Indian diaspora. [A2][A3][A7][A8]

Reaction from the president was swift and combative. Speaking to reporters at an NBA Finals game in New York, Trump accused federal judges of “doing tremendous damage to our country” and making governance “very hard.” The administration’s broader immigration crackdown continues on other fronts: the Department of Homeland Security has proposed sweeping restrictions on work permits for certain immigrants, including those with humanitarian protections, and has pursued a denaturalisation campaign against naturalised citizens accused of fraud. Viewed from Washington, the court ruling represents a significant check on executive power at a time when the White House is testing the limits of unilateral action on immigration. [A5][A4][A1]

Outside the United States, the ruling was greeted with relief, particularly in India. Tech entrepreneurs like former Meta engineer Zach Wilson publicly celebrated the decision, arguing that the fee would have blocked talented Indian engineers from contributing to the US economy. “If we can’t bring the brains to America…” he wrote, praising the quality of Indian engineering talent. Chinese state-linked media framed the ruling as a blow to Trump’s “America First” strategy, emphasising the judge’s finding that the fee amounted to an unconstitutional tax. Russian outlets, meanwhile, highlighted the legal challenge from Democratic states and the White House’s determination to appeal. From London, analysts note that the case is being closely watched as a test of how far the executive can go in reshaping immigration policy without Congress. [A6][A7][A8][A1][A14][A11]

The legal path ahead remains uncertain. The administration will take the case to the appellate level, and the earlier conflicting ruling suggests the judiciary is divided. If the fee is ultimately struck down, it would reinforce the principle that immigration-related charges with revenue-raising characteristics require legislative approval, constraining future presidents. Yet even as this battle plays out, the broader squeeze on legal immigration continues, creating a climate of anxiety among foreign workers and the employers who depend on them. For global technology firms and aspiring migrants alike, the question is whether the US will remain the world’s pre-eminent destination for high-skilled talent, or whether restrictive policies will push that talent elsewhere. [A3][A4][A13][A11]