A federal judge in Massachusetts has struck down US President Donald Trump's $100,000 fee on new H-1B visa applications, ruling that the measure amounted to an unlawful tax imposed without congressional approval.
The decision marks a setback for the Trump administration's efforts to overhaul the H-1B visa programme and has been welcomed by Indian diaspora groups, state attorneys general and several US lawmakers who said the fee would have discouraged skilled workers from coming to the United States.
US District Judge Leo Sorokin in Boston ruled on Monday that the administration lacked the authority to impose the fee, which Trump introduced through a presidential proclamation in September last year.
“...the Court finds that the Policy imposes a tax on H-1B petitions without the requisite delegation by Congress,” Sorokin said in his ruling.
The judge agreed with a coalition of 20 states that challenged the policy, concluding that the administration had exceeded its authority and encroached on Congress' power to set immigration policy and taxes.
“Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called,” Judge Sorokin wrote.
The Trump administration defended the policy and indicated it would challenge the ruling.
"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," White House spokesperson Taylor Rogers said.
She added: "The H-1B programme 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," Rogers said.
Trump had argued that the H-1B programme "has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor."
The H-1B programme provides 65,000 visas annually, along with an additional 20,000 visas for workers holding advanced degrees. The visa category is widely used by US technology companies and other employers to recruit specialised foreign talent. Indian professionals, particularly technology workers and physicians, form one of the largest groups of H-1B visa holders.
Before the new policy, employers generally paid between $2,000 and $5,000 in visa-related fees, depending on various factors.
Support from diaspora groups
Indian diaspora organisations welcomed the court's decision, saying it would help preserve fairness and competitiveness in the US immigration system.
"We welcome the Massachusetts federal court's decision striking down the $100,000 H-1B visa fee, which restores predictability and fairness to the employment-based immigration system," Khanderao Kand, Chief of Policy and Strategy at the Foundation for India and Indian Diaspora Studies (FIIDS), told PTI.
"Access to highly skilled global talent remains essential for the continued growth of US' technology, healthcare, and advanced manufacturing sectors. The judgment reinforces the principle that major policy changes must be grounded in statutory authority and economic realities," he said.
Sanjeev Joshipura, Executive Director of Indiaspora, welcomed the ruling but cautioned that administrative hurdles could still emerge.
"All stakeholders connected with H-1B visas will heave a sigh of relief after the court order, but one wonders if this is truly the end of the matter," Joshipura said.
"If the executive branch wishes to impose impediments on H-1B visa holders, as per the administration's stated policy preferences, then they might still be able to do so through procedural means that do not run afoul of US law," he added.
Lawmakers cite workforce needs
Several lawmakers welcomed the ruling, highlighting the importance of H-1B workers in addressing shortages in healthcare and education.
"Many school districts in rural and remote parts of the state rely on the H-1B visa programme to bring quality teachers to their communities," said Senator Lisa Murkowski, a Republican from Alaska.
Congressman Don Beyer said: "I'm glad to see the court block President Trump's unlawful H-1B visa fees, which imposed significant new costs and an unnecessary burden on already understaffed healthcare facilities across the country."
Republican Congressman Mike Lawler, who has proposed legislation to exempt healthcare workers from the fee, called the ruling welcome news.
California Attorney General Rob Bonta, who led the multistate lawsuit, said the fee harmed America's ability to attract skilled workers.
"This tax was an attack on America's ability to attract and retain the high-skilled talent that strengthens our economy and helps us meet critical workforce needs," Bonta said.
"California remains open for business, open to talent, and committed to ensuring our communities have essential services -- from healthcare to education -- that depend on a strong, skilled workforce," he added.
However, Arizona Republican Congressman Eli Crane criticised the ruling and renewed calls for legislative reforms to the visa programme.
"Although an activist judge blocked President Trump's reforms to the H-1B program, Congress can fix it without judicial obstruction. Urge your representative to cosponsor the End H-1B Visa Abuse Act of 2026, which halts and significantly reforms this broken system," Crane said.
The ruling is expected to set up a fresh legal battle over the future of the H-1B programme, with the White House preparing to challenge the decision in an appeals court.