US Appeals Court Rejects Trump Bid to Reinstate $100,000 H-1B Visa Fee

A United States federal appeals court has refused to stay a lower court order that struck down the Trump administration's $100,000 fee on H-1B visas for highly skilled foreign workers. The decision, issued on Friday, July 24, 2026, by a three-judge panel of the First Circuit Court of Appeals in Boston, upholds the earlier ruling that the fee was an unlawful tax not authorised by Congress.

The court denied the federal government's motion to stay the June 8 ruling by U.S. District Judge Leo T. Sorokin, which had invalidated the fee. In its order, the panel stated: "...we deny the defendants' motion to stay pending appeal to this Court, the district court's June 8, 2026, Memorandum and Order and accompanying Judgment."

The judges agreed with the plaintiffs—20 states led by Democratic governors—that the key question was whether Congress had delegated the authority to impose such a fee, not whether it could. The Trump administration had issued a proclamation in September 2025 imposing the $100,000 fee on new H-1B visas, which are non-immigrant visas allowing U.S. companies to employ foreign workers in specialised occupations requiring theoretical or technical expertise. American technology companies rely heavily on the H-1B programme to hire tens of thousands of employees annually from countries such as India and China.

Citing a 1989 U.S. Supreme Court ruling, the appeals court emphasised that the executive branch must show that Congress had spoken "clearly" in conferring discretionary authority to impose financial burdens, whether described as fees or taxes. "However, the Trump administration has not explained why that clear standard isn't required in this case," the order stated.

The court also noted that the administration failed to demonstrate that the plaintiff states would not suffer substantial injury if the stay were denied. The defendants "cursorily assert that the plaintiffs would face 'minimal' harm without developing that argument—if it does constitute an argument as to the plaintiffs' lack of substantial injury—further," the order added.

The United States issues 65,000 H-1B visas annually, plus an additional 20,000 for foreign workers with advanced degrees. Typical visa fees range from $2,000 to $5,000. The proposed $100,000 fee had been challenged as an overreach of executive authority.