A U.S. federal judge in Massachusetts has struck down President Donald Trump’s $100,000 H-1B visa fee, ruling that the administration exceeded its authority by imposing what amounted to a tax without approval from Congress.
U.S. District Judge Leo T. Sorokin, sitting in Boston, declared the policy unlawful and vacated it, delivering a major setback to one of the Trump administration’s most controversial immigration measures. The ruling is expected to bring immediate relief to employers, universities, healthcare institutions and thousands of skilled foreign professionals, including a large number of Indian applicants and workers.
“The President has no authority to levy a tax unless such a power is delegated by Congress through statute,” Sorokin wrote in his ruling. The administration had described the $100,000 payment requirement as an immigration restriction, but the court found that, in effect, it operated as a tax on H-1B petitions.
What the Court Said
Judge Sorokin delivered a 42-page ruling. He was clear: "The President has no authority to levy a tax unless such a power is delegated by Congress through statute."
The administration called the $100,000 charge a "restriction." The court disagreed. Whatever the label, the fee functioned as a tax. Immigration law gives the President broad powers over entry rules. But those powers do not include the right to tax.
The judge also cited a February 2026 Supreme Court precedent. That ruling had struck down Trump's "reciprocal" tariffs for the same reason — no congressional authorisation.
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The fee is now blocked. The Trump administration says it will appeal.
What Is the H-1B Visa?
The H-1B is a non-immigrant work visa, Congress created in 1990. It lets American employers hire skilled foreign workers in the fields like software engineering, medicine, research, teaching, and finance.
The regular annual cap is 65,000 new H-1B visas/statuses, with an additional 20,000 reserved under the U.S. advanced-degree exemption. Some employers, including certain universities and research institutions, are cap-exempt.
Indians remain the largest beneficiary group: USCIS data shows 70% of approved H-1B petitions in FY2025 were for beneficiaries born in India.
For many in Bengaluru, Hyderabad, and Chennai, the H-1B is more than a visa. It is a career path, a family plan, and a lifeline. Remittances from H-1B holders support households across India. The US accounts for roughly 27.7% of India's total inward remittances.
Before Trump's fee, employers paid between $2,000 and $5,000 to file an H-1B petition.
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How the H-1B Visa Unfolded?
● September 19, 2025 - Trump Acts
┆Trump signs a proclamation titled "Restriction on Entry of Certain Nonimmigrant Workers." It imposes a $100,000 annual fee on new H-1B petitions. The order takes effect two days later. Trump argues the H-1B programme replaces American workers with cheaper foreign labour.
● September 20–21, 2025 - India Responds
┆ India's Ministry of External Affairs warns of "humanitarian consequences." It urges the US to reconsider. The Indian Embassy opens an emergency helpline for distressed nationals. Fear spreads across the diaspora.
● October 2025 - Lawsuits Filed
┆The US Chamber of Commerce sues. It warns the fee will raise labour costs and reduce skilled hiring. Twenty Democratic state attorneys general file a separate lawsuit. They call the fee an unconstitutional tax. More challenges follow in California.
● December 2025 - First Court Rules for Trump
┆Judge Beryl Howell in Washington DC upholds the fee. She cites broad presidential authority over immigration. The ruling is immediately appealed.
● February 15, 2026 - The Chilling Effect
┆USCIS data shows only 85 employers paid the fee since September. New H-1B hiring is effectively frozen. H-1B registrations for FY 2027 fall 38.5% — from 343,981 to 211,600 applicants.
● June 8, 2026 - Fee Struck Down
┆Judge Sorokin issues his ruling in Boston. The fee is vacated. The Trump administration announces an appeal.
The Harm States Described
The 20 attorneys general argued the damage was real and visible. Teacher shortages worsened in public schools. Universities and research institutions lost staff. Healthcare access declined as foreign medical professionals became harder to hire. States called it "cascading harm", one bottleneck creating problems across many sectors.
India's Reaction — Then and Now
India's initial response in September 2025 was unusually direct. The Ministry of External Affairs rarely criticises US immigration policy so openly. Students and young professionals called it a policy that "shatters dreams." Industry bodies warned it would reshape hiring pipelines globally.
Monday's ruling changed the tone. The Foundation for India and Indian Diaspora Studies (FIIDS) welcomed it. They said it restores "predictability and fairness" to the system. Indiaspora's Executive Director Sanjeev Joshipura said all H-1B stakeholders would feel relief but cautioned the matter may not be fully resolved.
Trump Pushes Back
The Department of Homeland Security called the ruling "blatant judicial activism." A spokesperson said the administration disagrees with the decision. The fee, they argued, was designed to protect American workers and preserve programme integrity. An appeal is expected soon.
What Happens Next?
The legal fight continues. Two federal courts have now issued conflicting rulings on the same policy. The case could move to the First Circuit Court of Appeals. It may eventually reach the US Supreme Court.
For now, the $100,000 fee is blocked. But immigration lawyers advise employers and applicants to watch closely. A stay or appellate reversal could change everything quickly.