In a massive victory for the technology and healthcare sectors, a US federal judge on Monday struck down the Donald Trump administration’s controversial $100,000 fee for new H-1B visa applications.

In a scathing 42-page ruling, US District Judge Leo T. Sorokin in Boston declared the policy unconstitutional and vacated it in its entirety, ruling that the administration unilaterally bypassed Congress to implement an illegal tax disguised as a regulatory fee.

The Legal Crux: A Fee vs. A Tax

The massive fee increase—which marked a 20-to-50-fold surge over existing baseline rates that historically topped out around $5,000 to $7,500—was introduced by President Trump via presidential proclamation in September 2025. White House officials framed the premium as an initiative to encourage companies to hire American workers instead of foreign talent.

However, Judge Sorokin fundamentally rejected the administration’s legal justification under federal immigration laws.

• The Tax Verdict: “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 clarified that the six-figure mandate amounted to an unapproved tax rather than a regulatory penalty or a processing fee.
• Usurping Congress: Because the US Constitution explicitly grants the exclusive power to levy taxes and set immigration policies to Congress, the executive branch completely exceeded its constitutional powers by acting unilaterally.
• Precedent Cited: The judge specifically cited the landmark Supreme Court case Learning Resources v. Trump, which unraveled key pillars of Trump’s aggressive tariff strategies, to cement his decision.

States Fight Back: “Cascading Harm” to Healthcare and Schools

The ruling comes in response to a joint lawsuit led by California Attorney General Rob Bonta and a coalition of 20 Democratic state attorneys general.

The states successfully argued that the exorbitant fee created a cost-prohibitive barrier that crippled their ability to staff essential public services. The court documents outlined severe real-world impacts of the policy:

1. Medical Staffing Crises

The policy severely worsened staffing shortages in rural and public medical facilities by blocking access to foreign physicians, surgeons, and nurses.

2. Academic & Teacher Shortages

Public primary and secondary schools, alongside major state universities, were left unable to hire global educators and research talent, crippling key academic pipelines.

3. Economic Deterrence

The judge noted that the administration completely failed to weigh the broader economic impact of the policy, resulting in a sharp decline in overall H-1B applications from highly skilled professionals.

Reprieve for Silicon Valley

The H-1B visa program is the primary legal pathway used by American technology giants to employ foreign engineering and specialized talent. The ruling offers a massive operational sigh of relief for Silicon Valley, which relies heavily on the program.

For context, companies like Amazon had over 10,000 H-1B visas approved in the first half of 2025 alone, with tech giants like Microsoft and Meta each exceeding 5,000. Prior to this ruling, Department of Homeland Security (DHS) Secretary Markwayne Mullin revealed to a Senate panel that more than 200,000 applicants had already paid the $100,000 fee in fiscal year 2026 to try and fast-track processing or comply with the strict entry rules.

What Happens Next?

[Judge Overturns Fee] ──► Employers can immediately file H-1B petitions without the $100K fee
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                      [White House Vows Appeal]
      White House appeals the decision and requests an immediate stay of the order

• Immediate Processing: Immigration attorneys confirmed that, effective immediately, new H-1B filings can proceed under standard regulatory costs without the mandatory $100,000 fee attachment.
• The Administration’s Stance: The Trump administration is widely expected to fight back. White House spokeswoman Taylor Rogers defended the policy, stating, “President Trump has clear legal authority to restrict entry of any class of aliens he determines is not in America’s best interests… The H-1B program has been abused for decades, and President Trump finally took action to fix it.”

The administration is expected to appeal the decision to a higher federal court and will likely request an immediate emergency stay of Judge Sorokin’s order to keep the fee active while the legal battle plays out.