NRI PULSE STAFF REPORT
Washington DC, June 8, 2026: A federal judge has struck down a Trump administration policy that required employers to pay a $100,000 fee for certain new H-1B visa petitions, ruling that the president lacked the authority to impose such a charge without congressional approval.
In a decision issued June 8, U.S. District Judge Leo Sorokin of Boston ruled that the fee amounted to a tax and therefore could not be enacted through a presidential proclamation alone. The judge found that the administration had exceeded its legal authority and violated federal administrative law when implementing the measure.
The policy, announced in September 2025, sought to dramatically increase the cost of sponsoring some H-1B workers. The administration argued that the fee would discourage employers from relying on foreign labor and help protect jobs for American workers.
The ruling came in response to a lawsuit filed by a coalition of 20 Democratic state attorneys general, who argued that the fee would harm employers, universities, hospitals, research institutions, and public agencies that depend on highly skilled international talent.
The H-1B visa program allows U.S. employers to hire foreign professionals in specialty occupations, particularly in fields such as technology, engineering, healthcare, and research. Indian nationals receive the majority of H-1B visas issued each year, making the case especially significant for the Indian-American community and for Indian professionals seeking employment in the United States.
Immigration advocates and business groups had criticized the fee as prohibitively expensive, warning that it could discourage hiring and limit access to global talent. Technology companies, universities, and healthcare systems were among those expressing concern about the potential impact.
Judge Sorokin concluded that Congress had not delegated authority to the president to impose a fee of that magnitude. By characterizing the charge as a tax rather than a routine administrative fee, the court held that only Congress could authorize such a measure.
The legal battle may not be over. A separate federal judge in Washington, D.C., upheld the fee in a different case last year, creating a split among federal courts. The conflicting rulings increase the likelihood that the issue will be reviewed by a federal appeals court and potentially the U.S. Supreme Court.
For now, the decision removes a significant financial hurdle that had threatened to make H-1B sponsorship substantially more expensive for U.S. employers and foreign professionals alike.
