US judge strikes down Trump’s $100,000 H-1B visa fee, calls it unlawful tax

BOSTON: A US federal judge on Monday struck down a $100,000 fee imposed on H-1B visas for highly skilled foreign workers, ruling that the charge amounted to an unlawful tax not authorised by Congress.

US District Judge Leo Sorokin, based in Boston, issued the ruling in a case filed by 20 Democratic state attorneys general challenging the fee introduced by former US President Donald Trump in September.

The contested policy had sharply increased the cost of obtaining H-1B visas, which allow US employers to hire foreign professionals in specialised fields. Under the programme, 65,000 visas are issued annually, along with an additional 20,000 for applicants holding advanced degrees, typically valid for three to six years.

Before the fee hike, employers usually paid between $2,000 and $5,000 in application-related charges depending on various requirements. The new $100,000 fee significantly reduced demand, with US Citizenship and Immigration Services reporting only 85 payments received as of February 15, according to court filings.

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The Trump administration had argued that the charge was a lawful penalty under immigration law, intended to restrict entry of certain foreign nationals. However, the court rejected this argument.

Judge Sorokin stated that the fee functioned as a tax rather than a penalty, and that the president did not have constitutional or statutory authority to impose such a levy without approval from Congress.

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

The White House did not immediately respond to media requests for comment.