A federal judge in Boston has ruled that Donald Trump's $100,000 annual fee on H-1B visa applications is unlawful, describing it as an unconstitutional tax. The decision, issued by US District Judge Leo Sorokin, invalidates the fee that represented a 20-to-50 fold increase on previous rates.
The ruling came in a lawsuit filed by 20 Democratic state attorneys general. Judge Sorokin found that the fee amounted to a tax rather than a regulatory measure, and that the Constitution grants Congress, not the president, the power to levy taxes. He cited the 2026 Supreme Court case Learning Resources v Trump in his reasoning.
The Trump administration had imposed the fee via presidential proclamation in September, arguing that the H-1B programme had led to the 'large-scale replacement of American workers'. Commerce Secretary Howard Lutnick claimed major tech companies supported the move, urging them to 'train Americans' instead of hiring from abroad.
The decision offers a significant reprieve for Silicon Valley, which relies heavily on the H-1B programme. Amazon had over 10,000 visas approved in the first half of 2025, while Microsoft and Meta each exceeded 5,000. The programme, created in 1990, allows US employers to hire skilled foreign workers for up to six years, with 65,000 visas issued annually plus 20,000 for advanced-degree holders.
The Trump administration is widely expected to appeal the ruling.
