A US federal judge has invalidated Donald Trump's $100,000 annual fee on H-1B visa applications, ruling that the charge was an unlawful tax that violated federal administrative law and the constitution. The decision provides a significant reprieve for Silicon Valley, which relies heavily on the program to hire skilled foreign workers.
Ruling details
US district judge Leo Sorokin in Boston issued a 42-page ruling in a lawsuit filed by 20 Democratic state attorneys general challenging the fee announced by Trump in September 2025. The fee dramatically raised the cost of obtaining H-1B visas, representing a 20-to-50 fold increase over existing rates. Sorokin vacated the sweeping fee, and the Trump administration is widely expected to appeal the decision.
In his ruling, Sorokin found that the fee amounted to a tax rather than a regulatory restriction. Since the US Constitution grants Congress, not the president, the exclusive power to levy taxes, Trump lacked the authority to impose it. Sorokin cited the 2026 Supreme Court case Learning Resources v Trump, which unraveled a key pillar of Trump's aggressive tariff strategy, as precedent for his decision.
Legal basis challenged
The Trump administration had leaned on the Immigration and Nationality Act to justify the tax, but Sorokin determined that this legislation did not include the power to tax. Trump imposed the charge last September via presidential proclamation, arguing that the H-1B program had enabled the 'large-scale replacement of American workers'. Commerce secretary Howard Lutnick claimed at the time that major tech companies were 'on board', urging firms to 'train Americans' rather than hire from abroad.
Impact on tech industry
The ruling hands a significant reprieve to Silicon Valley, which depends on the H-1B program more than any other sector of the US economy. Amazon alone had more than 10,000 H-1B visas approved in the first half of 2025, with Microsoft and Meta each exceeding 5,000. The program, created in 1990, permits US employers to hire skilled foreign workers in specialty occupations for up to six years. Currently, 65,000 visas are issued annually, plus an additional 20,000 for advanced-degree holders. Roughly two-thirds of H-1B positions are computer-related.
The Trump administration is expected to appeal the ruling, which could lead to further legal battles over immigration policy.
