A federal judge in Boston blocked a proposed $100,000 fee on new H-1B visa applications on Monday [1, 2].

The ruling prevents a massive increase in costs for companies hiring foreign professionals, removing a financial barrier that critics argued would stifle the U.S. tech industry and academic research.

U.S. District Judge Leo Sorokin ruled that the Trump administration exceeded its authority by attempting to implement the charge [1, 2, 3]. The H-1B program, which was created in 1990 [1], allows U.S. employers to temporarily employ foreign workers in specialty occupations. Approximately 85,000 of these visas are issued annually [1].

"The $100,000 fee is an unlawful tax that Congress never authorized," Sorokin said [1].

The proposed fee represented a stark increase from typical employer costs, which previously ranged between $2,000 and $5,000 [1]. The court found that the fee violated statutory limits on how the H-1B program is funded, effectively turning a processing fee into a tax.

The decision follows lawsuits from several states that argued the policy would hinder their local economies. A state attorney general said the decision is a victory for the states that sued the administration over the fee, which would have damaged their ability to compete for talent [3].

Legal representatives for the affected parties noted the potential for economic disruption had the fee gone into effect. An attorney general said the administration’s $100,000 H-1B fee would have crippled employers’ ability to attract highly-skilled talent [2].

“"The $100,000 fee is an unlawful tax that Congress never authorized."”

This ruling reinforces the legal boundary between administrative fees and taxes, asserting that the executive branch cannot unilaterally impose significant financial burdens on visa applicants without explicit legislative approval from Congress. By maintaining the existing fee structure, the court ensures that the cost of hiring high-skilled foreign labor remains accessible for small and mid-sized firms, preventing a scenario where only the wealthiest corporations could afford the H-1B talent pool.