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A federal judge on Monday blocked President Donald Trump‘s policy imposing a $100,000 fee on new H-1B visa applications, ruling that the administration lacked the authority to create the charge without congressional approval.
U.S. District Judge Leo Sorokin sided with a coalition of 20 states that challenged the policy, finding that the fee amounted to a tax that could not be imposed by executive action alone.
In his ruling, Sorokin concluded that federal law does not grant the administration the power to levy a $100,000 charge on H-1B visa petitions and said the government failed to provide a sufficient legal justification for the policy.
The Trump administration announced the fee last year as part of a broader effort to tighten rules surrounding the H-1B program, which allows U.S. employers to hire highly skilled foreign workers in specialty occupations. Officials argued the change would help protect American jobs and address concerns about misuse of the visa system.
The new fee represented a dramatic increase from the existing H-1B filing costs, which generally range from several thousand dollars depending on the employer and application type.
A coalition led by California sued to block the policy, arguing it would make it significantly more difficult for public institutions, including schools, universities and healthcare systems, to recruit highly skilled workers from abroad.
The court agreed with the states’ arguments and ordered the fee to be set aside under the federal Administrative Procedure Act.
The Department of Homeland Security criticized the decision, calling it judicial overreach and defending the administration’s efforts to reform the H-1B program. Officials said the policy was intended to strengthen program integrity and encourage employers to prioritize American workers.
The ruling marks a setback for one of the administration’s most aggressive immigration-related workforce policies and is likely to be appealed.
