A federal judge in Boston has struck down the Trump administration’s $100,000 fee on new H-1B visa applications, holding that the policy exceeded executive authority and amounted to an unlawful tax imposed without congressional approval.
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U.S. District Court Judge Leo Sorokin delivered the ruling on Monday in a suit filed by 20 states challenging the fee hike.
The decision contradicts an earlier federal court ruling that had upheld the fee, setting up the possibility of conflicting appellate decisions across different federal circuits.
The Trump administration had introduced the sharply increased fee as part of efforts to prevent foreign workers from taking jobs from Americans.
However, Judge Sorokin ruled that the administration violated the Administrative Procedure Act, which governs how federal agencies develop and issue regulations.
“The Court finds that the Policy imposes a tax on H-1B petitions without the requisite delegation by Congress,” Sorokin wrote.
H-1B visas are designed for highly skilled jobs that employers say are difficult to fill with available American workers. Technology companies are among the biggest users of the programme, with workers from India receiving nearly three-quarters of approvals.
Before the fee hike, most H-1B visa applications cost several thousand dollars. The new $100,000 charge triggered confusion and panic among employers, students and workers in the United States and abroad, leading to multiple lawsuits.
In the Boston case, the states argued that the policy would make it harder for them to recruit teachers, doctors, researchers, public university faculty and other skilled professionals needed in critical sectors.
Massachusetts Attorney General Andrea Joy Campbell welcomed the ruling, describing it as a victory for industries facing severe labour shortages.
“Today’s victory protects the integrity of the H-1B visa program as a tool to address severe labor shortages in vital industries like education, healthcare, and medical research,” Campbell said.
She added that the ruling would help Massachusetts fill critical vacancies and recruit world-class faculty and researchers.
The American Medical Association also praised the decision.
Its president, Bobby Mukkamala, described the ruling as “a victory for patients,” saying international medical graduates play a vital role in caring for patients, especially in underserved and rural communities.
“At a time when communities across the country face physician shortages and growing barriers to care, we should be removing obstacles — not creating new ones — to attract talented physicians and other highly skilled professionals,” he said.
The Department of Homeland Security, DHS, criticised the judgment, describing it as “judicial activism” against President Donald Trump’s immigration reform agenda.
The department said the administration’s immigration policy was aimed at serving American citizens, workers and families, while preserving national identity.
White House spokesperson Taylor Rogers said the administration was confident that the ruling would be reversed on appeal.
The Boston ruling represents President Trump’s first major legal defeat in challenges to the $100,000 H-1B fee.
At the centre of the decision was whether the executive branch could impose such a charge without Congress, which holds the constitutional power to tax.
Judge Sorokin held that although the President may have broad authority to restrict entry into the United States under immigration law, that authority does not extend to creating taxes without legislative approval.
He said there was nothing in the Immigration and Nationality Act or any other statute showing that Congress intended to delegate its taxing power to the executive branch in this context.
The judge also relied on recent Supreme Court reasoning on executive economic powers, including the decision in Learning Resources, Inc. v. Trump, which limited the administration’s global tariffs regime.
Immigration lawyers said the decision goes beyond a single visa fee and raises broader questions about who controls immigration policy.
Lynden Melmed, a partner at business immigration firm BAL and former chief counsel at U.S. Citizenship and Immigration Services, said the ruling recognised that the case was fundamentally about whether Congress or the executive branch sets immigration policy.
The legal dispute over the H-1B fee is not limited to Boston.
The U.S. Chamber of Commerce filed a separate suit in federal court in Washington, D.C., but failed to secure summary judgment against the policy. That case is now before the U.S. Court of Appeals for the District of Columbia Circuit.
Another lawsuit has also been filed in federal court in San Francisco by religious groups and labour organisations.
The conflicting rulings now raise the possibility that different appellate courts may reach different conclusions on the legality of the fee.
The $100,000 fee was scheduled to remain in effect until September 2026, but Judge Sorokin’s ruling vacated the policy in the case before him.
The outcome of the appeals could determine whether the fee remains enforceable nationwide and whether the executive branch can use immigration powers to impose large financial charges on visa applicants without direct congressional authorisation.
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