A federal judge has struck down Donald Trump's controversial requirement that employers pay a $100,000 (£74,830) fee when applying for H-1B visas, dealing a significant setback to one of the president's most aggressive immigration and labour market policies.
The ruling, issued on Monday by US District Judge Leo Sorokin, concluded that the Trump administration exceeded its authority when it introduced the dramatic fee increase last year. The decision represents a major victory for a coalition of Democratic attorneys general who argued the measure threatened businesses, public services and the broader American economy.
The H-1B visa programme allows US employers to recruit highly skilled foreign workers for specialised roles, including positions in technology, healthcare, education and scientific research.
Judge Rules White House Overstepped Its Authority
At the heart of the legal dispute was whether the president had the power to impose such a substantial fee without approval from Congress. Judge Sorokin ruled that he did not.
In a 42-page decision, the Massachusetts-based judge found that the $100,000 (£74,830) charge amounted to a tax rather than a routine administrative fee. Under the US Constitution, taxation powers rest with Congress, and lawmakers had not authorised the executive branch to introduce such a measure.
'The President had no power or delegated authority to impose a tax on H-1B petitions,' Sorokin wrote in his ruling.
The fee represented a staggering increase from the previous costs associated with H-1B applications, which generally ranged from hundreds to several thousand dollars depending on the circumstances.
Trump introduced the policy in September as part of his broader 'America First' agenda, arguing that some employers had abused the visa programme and used foreign workers to suppress wages for American employees.
States Celebrate Victory for Employers and Workers
The lawsuit challenging the policy was filed in December by a coalition of states led by New York Attorney General Letitia James and supported by California Attorney General Rob Bonta.
Following the ruling, both officials hailed the decision as an important victory. Bonta argued that the fee increase threatened America's ability to attract highly skilled workers needed to fill critical positions across the economy.
'This tax was an attack on America's ability to attract and retain the high-skilled talent that strengthens our economy and helps us meet critical workforce needs,' he said.
The decision is particularly significant for California, where cities such as San Francisco and San Jose rank among the nation's largest users of H-1B visas. Technology companies, hospitals, universities and research institutions frequently rely on the programme to recruit specialised talent.
James echoed those concerns, saying the court had stopped what she described as an unlawful effort to undermine a programme that supports thousands of jobs.
Battle Over Immigration Policy Continues
Despite the setback, the Trump administration signalled it has no intention of backing away from its broader immigration agenda.
Justice Department spokesperson Natalie Baldassarre defended the administration's efforts, saying officials remain committed to protecting American workers and ensuring employers do not misuse the H-1B system.
The ruling is likely to reignite debate over the role of skilled immigration in the US economy. Supporters argue that foreign professionals help companies remain competitive and drive innovation, while critics contend that the programme can sometimes disadvantage domestic workers.
For now, however, businesses seeking highly skilled employees have secured a major courtroom victory. Unless a higher court overturns the decision, employers will no longer face the eye-watering $100,000 (£74,830) fee that threatened to reshape one of America's most important work visa programmes.
