US Court Strikes Down Trump's $100,000 H-1B Fee as Unlawful Tax
On June 8, U.S. District Judge Leo T. Sorokin issued a 42-page ruling with nationwide effect, striking down President Donald Trump's policy that imposed a $100,000 supplemental fee on H-1B visa petitions for highly skilled foreign workers. The decision came in response to a lawsuit filed by California and 19 other states, which argued that the fee constituted an unlawful tax that the President could not impose without Congressional approval.
The H-1B visa, established under the Immigration Act of 1990, is a key component of the United States' high-skilled immigration system. It allows U.S. employers to hire foreign professionals in specialty occupations requiring at least a bachelor's degree in a relevant field, such as technology, engineering, healthcare, and research. The visa is typically valid for up to six years and often serves as a pathway to permanent residency. Congress has capped H-1B approvals at 65,000 per year for most private employers, with an additional 20,000 reserved for holders of advanced degrees. Universities, non-profit research entities, and government research organisations are exempt from these caps.
President Trump signed Proclamation 10973 on September 19, 2025, requiring a $100,000 supplemental payment for all H-1B visa petitions, a significant increase from the existing filing costs of roughly $960 to $7,595. The proclamation claimed that the H-1B programme was being exploited to replace American workers with lower-paid foreign labour, harming U.S. economic and national security interests. It invoked Sections 212(f) and 215(a) of the Immigration and Nationality Act, which grant the President authority to restrict entry of aliens deemed detrimental to U.S. interests.
The plaintiff states argued that the fee violated the separation of powers by usurping Congress's constitutional authority to set immigration policy and levy taxes. They also contended that the fee would hinder their ability to recruit essential skilled workers, exacerbating shortages in teaching, healthcare, and research. The court agreed, ruling that the $100,000 charge was an unlawful tax beyond the President's power without Congressional delegation.
The ruling carries significant implications for India, whose nationals account for roughly 70% of H-1B approvals, followed by China at about 12%. The fee would have created a prohibitive barrier for thousands of Indian software engineers, doctors, and researchers, many of whom already face lengthy green card backlogs.
