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A federal judge on Monday ruled that the USD 100,000 fee imposed by US President Donald Trump for H-1B applications was unlawful as it did not have the approval
of Congress. "...the Court finds that the Policy imposes a tax on H-1B petitions without the requisite delegation by Congress," US District Court judge Leo Sorokin in Boston, Massachusetts, said in a ruling.
The H-1B programme is one of the most sought-after US work visas that allows American companies to hire skilled global talent. Trump's order proposing a USD 100,000 annual fee per H-1B worker left many uncertain about visa reforms and new requirements.
In September last year, Trump signed a proclamation adding the USD 100,000 fee for new H-1B visa applications.
The fees are generally paid for by a sponsoring employer, and administration officials have cast it as an initiative to encourage companies to hire Americans instead.
"Here, the substance and application of the USD 100,000 payment reveal that it is a tax, regardless of what the payment is called," Judge Sorokin wrote.
The judge agreed with a group of 20 states that the Trump administration exceeded its authority, and the fee usurped Congress's power to set immigration policy and taxes.
The H-1B visa programme is used extensively by American technology companies to employ foreign workers. Indian professionals, including technology workers and physicians, form one of the largest groups of H-1B visa holders.
The federal judge's order comes days after Department of Homeland Security (DHS) Secretary Markwayne Mullin told a Senate panel that more than 200,000 applicants seeking H-1B visas to work in the US paid USD 100,000 to fast-track processing of their petitions in fiscal year 2026.
US-based Indian diaspora advocacy groups welcome decision
US-based Indian diaspora advocacy groups welcomed the Massachusetts federal court's decision to strike down the USD 100,000 fee levied by the Trump administration on H-1B visas, contending that it was appropriate for preserving US' competitive edge in innovation and entrepreneurship.
"We welcome the Massachusetts federal court's decision striking down the USD 100,000 H-1B visa fee, which restores predictability and fairness to the employment-based immigration system," Khanderao Kand, Chief of Policy and Strategy at the Foundation for India and Indian Diaspora Studies (FIIDS), told PTI.