A federal judge struck down a $100,000 [1] application fee for new H-1B visas ordered by the Trump administration on June 8, 2024 [2].
The ruling removes a significant financial barrier for technology firms and foreign professionals seeking to work in the United States. By declaring the fee unlawful, the court prevents the administration from using the visa process as a high-cost revenue stream.
U.S. District Judge Leo Sorokin issued the decision in the U.S. District Court in California, San Francisco division [3]. The court found that the fee exceeded the administration's statutory authority and functioned as an unauthorized tax on employers and visa applicants [4].
"The fee is an unauthorized tax," Sorokin said in his ruling [5]. He said the fee was effectively a tax imposed without congressional approval [6].
The legal challenge was supported by 20 states, including California and 19 others [7]. These states argued that the cost was prohibitive and lacked a legal basis under existing immigration laws.
In response to the court's decision, a White House spokesperson said, "We are committed to protecting American jobs" [8].
The H-1B program allows U.S. companies to employ foreign workers in specialty occupations. The $100,000 [1] fee would have represented a massive increase over standard processing costs, creating a steep hurdle for smaller companies and startups.
“"The fee is an unauthorized tax,"”
This ruling reinforces the principle that the executive branch cannot unilaterally impose significant financial charges that function as taxes without legislative authorization from Congress. For the tech industry, it preserves the accessibility of the H-1B visa program, preventing a scenario where only the wealthiest corporations could afford to recruit high-skilled foreign talent.
