US President Donald Trump’s attempt to impose a $100,000 fee on new H-1B visas for highly skilled foreign workers has been struck down by a federal court. US District Judge Leo Sorokin in Boston ruled that the fee amounted to an unlawful tax never authorised by Congress.
The ruling followed a lawsuit filed by 20 Democratic state attorneys general challenging the measure announced by Trump in September.
The H-1B program provides 65,000 visas annually, with an additional 20,000 for workers holding advanced degrees, valid for three to six years. Employers previously paid between $2,000 and $5,000 in fees to secure visas for foreign workers.
The sharp increase to $100,000 discouraged applications, with court filings showing that by mid-February only 85 payments had been received under the new regime. Data released by US Citizenship and Immigration Services in March revealed that properly submitted H-1B registrations fell by 38.5 per cent compared to the previous year, dropping from 343,981 in fiscal year 2026 to 211,600 in fiscal year 2027.
The Trump administration had argued that the fee was a monetary penalty within the President’s lawful authority under federal immigration law, intended to restrict the entry of foreign nationals. However, the court rejected this claim, stating that the President cannot levy taxes without explicit delegation from Congress. Judge Sorokin declared the policy unlawful and vacated it entirely, noting that the proclamation imposed a tax on H-1B petitions without statutory backing.
Trump’s proclamation had justified the fee by alleging that the H-1B programme was being exploited to replace American workers with lower-paid labour, undermining both economic and national security. It claimed that employers had abused the statute to suppress wages, disadvantaging American citizens while making it harder to attract and retain highly skilled temporary workers, particularly in critical STEM fields.
The fee hike and immigration changes had significant repercussions for India, which accounts for a large share of H-1B applicants. With employers reluctant to hire foreigners amid widespread tech job cuts linked to artificial intelligence, many Indian workers in the US lost jobs and were forced to return home after failing to secure new employment within the mandatory 60-day period. This created a substantial job vacuum and raised concerns in New Delhi.
In May, Indian foreign minister S Jaishankar raised the issue with US Secretary of State Marco Rubio. Rubio acknowledged that there could be “bumps” and “friction points” during the transition as the US sought to reform its immigration system, but insisted that the changes were not targeted at India. He emphasised that the US faced a broader migration crisis, citing over 20 million illegal entries in recent years, and argued that an efficient framework would ultimately benefit all stakeholders.
The court’s decision marks a significant setback for Trump’s immigration policy, restoring the previous fee structure and offering relief to employers and foreign workers alike. It also underscores the limits of presidential authority in imposing financial measures without congressional approval.
Agencies
