Article Complete
    AIM

    US Judge Strikes Down Trump’s $100,000 H-1B Visa Fee, Indians Stand to Benefit

    US Judge Strikes Down Trump’s $100,000 H-1B Visa Fee, Indians Stand to Benefit

    The ruling came in a lawsuit filed by 20 state attorneys general, while the Trump administration plans to appeal.

    US Judge Strikes Down Trump’s $100,000 H-1B Visa Fee, Indians Stand to Benefit
    Siddharth Jindal··Updated OCTOBER 18, 2026, 12:10 PM
    5 min

    A federal judge has struck down US President Donald Trump’s controversial $100,000 fee on new H-1B visas, ruling that the administration lacked congressional authority to impose what amounted to a tax on employers hiring foreign skilled workers.

    US District Judge Leo Sorokin in Boston on June 8 ruled that the fee, announced by Trump in September, was unlawful and could not be enforced by the US State Department or US Citizenship and Immigration Services (USCIS). 

    The decision came in response to a lawsuit filed by 20 state attorneys general challenging the measure.

    The Trump administration had argued that the charge was a lawful penalty imposed under the president’s authority to restrict the entry of foreign nationals deemed detrimental to US interests. However, Sorokin found that the fee functioned as a tax rather than a penalty.

    “Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called,” Sorokin wrote in his ruling.

    The judge also pointed to a recent US Supreme Court decision that invalidated Trump’s broad tariff measures, saying the same legal reasoning applied in this case because immigration law does not grant the president authority to levy taxes.

    The White House signalled it would challenge the ruling. “President Trump has clear legal authority to restrict entry of any class of aliens he determines is not in America’s best interests, and that is exactly what he did,” White House spokeswoman Taylor Rogers said in a statement, adding that the administration expects the decision to be overturned on appeal.

    The H-1B programme, widely used by technology companies and other employers to recruit specialised foreign talent, issues 65,000 visas annually, along with an additional 20,000 visas for applicants holding advanced degrees. Indian nationals account for the vast majority of visa recipients, securing over 70% of all approvals. Before Trump’s proclamation, employers typically paid between $2,000 and $5,000 in visa-related fees.

    When introducing the fee, Trump argued that the H-1B programme “has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour.”

    The fee did not apply to foreign nationals already in the United States on student visas, a group that accounts for a significant share of new H-1B recipients. Even so, adoption of the measure remained limited. According to a USCIS official, the agency had received only 85 payments of the $100,000 fee as of February 15.

    The administration has simultaneously pursued tighter scrutiny of H-1B applicants and proposed a revised visa allocation system that would prioritise higher-skilled and higher-paid workers.



    Your reaction

    Discussion

    What's your take on this story?

    0/1000

    No comments yet — be the first to share your view.

    Explore our newsletters

    Build your routine with some of our top newsletters or view them all here.

    Wake up informed

    Make sense of the day's AI news and breakthroughs with our morning briefing.

    Belamy
    WeeklyBelamySee the latest

    Industry intelligence

    Receive a roundup of AI adoption stories by industry vertical, curated for professionals.

    3x WeeklySector6See the latest

    By signing up, you agree to our Privacy Policy.

    Membership

    Stay ahead with AI insights.

    Unlimited access to premium articles, exclusive analysis, and the stories shaping India's AI economy.

    Subscribe now

    AIM Americas

    1190 Miraloma Way Suite P, Sunnyvale, CA 94085

    AIM India

    1st Floor, Sakti Statesman, Bellandur, Bengaluru – 560103

    © 2026 AIM. All rights reserved.