Judge Halts Trump's $100,000 H-1B Visa Fee, Citing Constitutional Overreach

In a significant blow to the Trump administration's immigration policies, a federal judge has vacated a controversial policy that imposed a $100,000 fee on employers seeking H-1B visas for highly skilled foreign workers. The ruling, delivered by U.S. District Judge Leo Sorokin in Boston, found the fee to be an unlawful tax levied without congressional authorization.

The policy, implemented via a presidential proclamation last September, aimed to curb perceived misuse of the H-1B visa program, which the administration argued was displacing American workers. However, Judge Sorokin declared that the fee violated the federal Administrative Procedure Act and the Constitution, asserting that the payment constituted a tax that Congress had not delegated to the executive branch.

"Every day, thousands of people with H-1B visas serve New Yorkers as doctors, teachers, and other skilled workers," stated New York Attorney General Letitia James, whose state was among the 20 that sued to block the fee. "Today a court put an end to this administration's illegal attempt to destroy this critical program and the many jobs it makes possible."

The judge's reasoning echoed a Supreme Court decision from February that struck down Trump's "reciprocal" tariffs, citing a lack of legal authority for unilateral imposition. Sorokin noted that the Department of Homeland Security's fee was deemed a tax under the Constitution's Taxing Clause.

President Trump expressed frustration with the ruling, lamenting, "These federal judges are really giving us a hard time." He also criticized the broader judicial system, stating, "It's really crazy what's going on with the court system. They're hurting our country very badly."

The H-1B program, established in 1990, allows U.S. employers to hire foreign workers in specialized occupations for up to six years. Prior to the $100,000 fee, typical application fees ranged from $2,000 to $5,000. The program is capped at 65,000 visas annually, with an additional 20,000 for those with advanced degrees from U.S. institutions. Despite the high fee, only 85 payments of the $100,000 were made as of February 15, according to a March filing by the administration.

The Trump administration has announced its intention to appeal the decision. White House spokeswoman Taylor Rogers defended the administration's stance, asserting, "President Trump has clear legal authority to restrict entry of any class of aliens he determines is not in America's best interests, and that is exactly what he did." She added, "The H-1B program has been abused for decades, and President Trump finally took action to fix it. A federal judge in Washington already upheld a nearly identical order, and the Administration is confident this order will be reversed on appeal."

The lawsuit challenging the fee was filed in December against the Trump administration and several officials. The U.S. Chamber of Commerce also filed its own legal challenge against the policy in October.

— CNBC's Dan Mangan contributed to this article.