Federal Judge Overturns H-1B Visa Fee Imposed by Trump Administration
A federal judge, appointed by former President Barack Obama, has annulled the Trump administration’s plan to introduce a $100,000 fee for companies hiring foreign H-1B visa workers, a move aimed at addressing concerns over the impact on white-collar jobs in the U.S.
On Monday, U.S. District Court Judge Leo Sorokin from Massachusetts ruled against the proposed fee, stating that it essentially constitutes a tax that lacks congressional approval.
“The court finds that this policy imposes a tax on H-1B petitions without the necessary mandate by Congress,” Sorokin noted in his ruling.
In related developments, the court has invalidated the policy requiring the $100,000 payment. The plaintiffs are seeking a judicial declaration that the policy violates the Administrative Procedure Act and the Constitution, claiming it is illegal. The defendants have argued that a declaratory judgment alone doesn’t address the plaintiffs’ injury claims since it doesn’t influence the declaration or preclude further litigation. Nevertheless, the court has also mandated the cancellation of the challenged policy.
The H-1B visa program enables U.S. companies to hire hundreds of thousands of foreign workers, primarily from India, to fill various white-collar positions. Studies suggest that Fortune 500 companies often leverage this program as a key strategy for saving labor costs.
Reports have surfaced regarding the adverse effects of the H-1B visa program on American white-collar workers, with many being displaced and required to train their foreign counterparts.
There are around 650,000 H-1B visas granted annually, which have significantly impacted the job market for American workers.
Last year, President Trump announced the $100,000 fee, which soon faced legal challenges from various interest groups, including the U.S. Chamber of Commerce. The fee was intended to deter companies from using H-1B visas for hiring less expensive foreign workers, although critics argued that the fee had several loopholes.
The case is filed under California vs. Marin, No. 1:25-cv-13829, in the United States District Court for the District of Massachusetts.
