Court Overturns $100,000 H-1B Visa Fee Imposed by Trump Administration

A federal judge has nullified a Trump administration policy requiring companies to pay hefty fees for H-1B visa petitions. The policy demanded $100,000 per visa application, effectively acting as an unlawful tax on businesses hiring skilled foreign workers. Judge Leo T. Sorokin of the Federal District Court for the District of Massachusetts ruled against this initiative, stating it overstepped Congress’s exclusive authority to levy taxes.

The H-1B visa program is critical for industries struggling with skilled labor shortages, making the ruling significant. In a detailed 42-page opinion, Judge Sorokin criticized the administration’s claims that the fee represented a ‘regulatory payment’ rather than a tax. He noted the lack of evidence and legal precedent to support this argument.

“This is mere ipse dixit,” Judge Sorokin wrote, indicating the administration’s argument lacked substantiation.

Furthermore, the judge pointed out the rule was rapidly developed without a structured process or public input, despite potentially extensive opposition from industries reliant on the visa program. The Trump administration maintained the H-1B program was exploited to replace American workers with lower-paid counterparts, suggesting the high fee would encourage companies to hire U.S. citizens for better-paying positions.