US Judge Strikes Down Trump’s $100,000 H-1B Visa Fee; Indian Diaspora Welcomes Decision

By Mahima Katal

WASHINGTON, June 9: A US federal judge has struck down President Donald Trump's controversial $100,000 fee on H-1B visa applications, ruling that the measure was unlawful because it lacked congressional approval.

In a ruling issued on Monday, US District Judge Leo Sorokin of Boston said the administration exceeded its authority by imposing the fee through executive action.

“...the Court finds that the Policy imposes a tax on H-1B petitions without the requisite delegation by Congress,” Sorokin wrote.

The H-1B programme allows US companies to hire highly skilled foreign professionals in specialised fields including technology, engineering, healthcare and finance. The visa category is widely used by American technology firms and remains one of the primary pathways for skilled foreign workers seeking employment in the United States.

Trump introduced the $100,000 annual fee through a presidential proclamation signed in September last year. Administration officials argued that the surcharge would encourage employers to hire American workers instead of relying on foreign talent.

However, the court concluded that the fee functioned as a tax and therefore required congressional authorisation.

“Here, the substance and application of the USD 100,000 payment reveal that it is a tax, regardless of what the payment is called,” the judge said.

The lawsuit was brought by a coalition of 20 states, which argued that the administration had usurped Congress's authority over taxation and immigration policy. The court agreed, finding that the executive branch lacked the legal authority to impose the fee unilaterally.

The ruling comes days after Department of Homeland Security Secretary Markwayne Mullin told a Senate panel that more than 200,000 H-1B applicants had paid the $100,000 fee to expedite processing during fiscal year 2026.

The decision was welcomed by Indian diaspora organisations, which said it restores certainty to the employment-based immigration system. Indian nationals account for the overwhelming majority of H-1B visa holders and are among those most affected by changes to the programme.

"We welcome the Massachusetts federal court's decision striking down the USD 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.

He said access to highly skilled global talent remains critical for the growth of US technology, healthcare and advanced manufacturing sectors.

Sanjeev Joshipura, Executive Director of Indiaspora, also welcomed the ruling but cautioned that the administration could still pursue its immigration objectives through procedural measures. "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," he said, adding that future administrative actions could still create challenges for visa holders without violating existing law.

Under current law, Congress authorises 65,000 new H-1B visas annually, along with an additional 20,000 visas for applicants holding advanced degrees from US institutions.

Indian professionals receive the largest share of these visas each year, making the court's decision particularly significant for India's skilled workforce and the companies that employ them.