New Delhi: U.S. President Donald Trump’s new $100,000 fee on new H-1B visa applications has been ruled unlawful by a federal judge. According to trade unions which rely on skilled people from abroad, the decision has been hailed by the Indian community abroad, tech firms, universities and employers.
In his decision, U.S. District Judge Leo Sorokin in Boston determined that the Trump administration could not charge such a considerable fee without the approval of Congress. The fee, in essence, was a tax and could only be levied by Congress under the U.S. Constitution, the judge said.
The $100,000 fee was implemented as part of a more comprehensive plan for more strictly regulating immigration, which began in September 2025. The number of fees that employers pay for H-1B visa applications prior to the change was in the range of $2,000 to $5,000. The new charge has substantially raised the cost of employing qualified foreign personnel in various areas like research, healthcare, education, technology, etc.
An H-1B visa is a non-immigrant visa designed to bring highly trained foreign nationals to the United States for certain specialized occupations that may be performed by highly educated employees with specialized training. Given that Indian professionals dominate the H-1B visa holders, the issue of H-1B reverts to its core significance, which is for India and the community of Indians residing in the United States.
A coalition of 20 states led by Democrats filed the lawsuit against the fee. The states disputed the high price-point as it would deter companies, universities and public institutions from hiring international talent. It might also exacerbate the shortage of doctors, teachers, engineers and researchers, they added. While striking down the policy nationwide, Judge Sorokin said that he shared many of these concerns.
The ruling was welcomed by the Indian community in the country, who hailed it as a positive step for skilled immigrants and employers. The fee fuelled a nightmare scenario for thousands of professionals and families looking for jobs in the United States, community leaders said. Many also pointed to the fact that highly-skilled immigrants are also important drivers of innovation, economic growth and technological development.
The fee was one of the most meted out backlash from technology firms. H-1B is a program favored by major employers to hire engineers, software developers, artificial intelligence experts, and other professionals with top-tier skills from overseas. Industry organizations previously had raised concerns about the impact of the fee on hiring and on America’s competitiveness in critical industries.
While the unpopular decision has been handed down, the lawsuit might not be over. The Trump administration has said it will take an appeal, as will other plaintiffs. In the meantime, by blocking enforcement of the $100,000 fee and reinstating the former fee structure for H-1B visa petitions, the court is granting companies a reprieve.
The ruling is a welcome development for thousands of Indian professionals and U.S. employers, who have had cause for loss of confidence in the future of the H-1B visa program. It’s hoped the ruling will enable businesses to keep recruiting qualified foreign workers and keep significant immigration costs such as those for dual tax jurisdiction under congressional control.
