Federal Judge Strikes Down Trump's $100,000 H-1B Visa Fee as Unconstitutional Tax

U.S. District Judge Leo Sorokin ruled Monday that the Trump administration's $100,000 fee for H-1B visa petitions was unconstitutional, finding it functioned as a tax that only Congress has the authority to impose or delegate. The ruling vacated agency memoranda, guidance documents, and fee schedules that had established and enforced the policy. Sorokin also found the fee violated the Administrative Procedure Act because the agencies implementing it failed to conduct the required notice-and-comment period and did not adequately justify bypassing that process. The lawsuit was brought by 20 states, led by California, and the judge cited a recent Supreme Court precedent that struck down Trump's reciprocal tariffs on similar constitutional grounds. Trump had introduced the fee in September, arguing the H-1B program enabled large-scale replacement of American workers, but prior to the change, fees had ranged from roughly $2,000 to $7,595 per application. Only 85 payments of the $100,000 fee had been made as of mid-February, generating $8.5 million. The White House said it is confident the ruling will be reversed on appeal, pointing to a separate federal judge who upheld a nearly identical order.