The Court’s decsion to block Trump’s controversial policy decision is expected to benefit thousands of skilled foreign workers, particularly Indians, after the massive fee hike triggered a sharp decline in H-1B visa applications.
BY PC Bureau
June 9, 2026: Washington, June 9: In a setback to US President Donald Trump’s immigration agenda, a federal judge has struck down a controversial policy that imposed a $100,000 fee on new H-1B visa applications, ruling that the measure exceeded presidential authority and amounted to an unlawful tax.
US District Judge Leo Sorokin ruled that the administration lacked the legal authority to impose such a fee, declaring the policy unlawful and vacating it in its entirety.
The ruling came in response to a lawsuit filed by 20 Democratic state attorneys general challenging a presidential proclamation issued in September that dramatically increased the cost of hiring highly skilled foreign workers under the H-1B visa programme.
Traditionally, employers paid between $2,000 and $5,000 in fees to sponsor an H-1B worker. The Trump administration raised that amount to $100,000, arguing that the programme had been abused by companies seeking cheaper foreign labour at the expense of American workers.
However, the court rejected that argument, stating that while the President may regulate immigration, he cannot impose taxes or tax-like fees without explicit authorization from Congress.
“The President has no authority to levy a tax unless such power has been delegated by Congress,” Judge Sorokin wrote in his decision.
The administration’s own court filings indicated that the steep fee increase sharply reduced demand for H-1B visas. By mid-February, only 85 employers had paid the new fee.
A federal judge struck down a $100,000 fee President Donald Trump ordered for H-1B visa applications, providing a reprieve for US technology companies that rely on hiring skilled foreign workers. Michael Shepard explains https://t.co/iekrWsUBPf pic.twitter.com/OwOPlNq3vQ
— Bloomberg (@business) June 8, 2026
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Recent data from the US Citizenship and Immigration Services showed that H-1B registrations fell by nearly 39 percent, dropping from 343,981 in fiscal year 2026 to 211,600 for fiscal year 2027.
The decision is expected to be welcomed in India, which supplies the largest share of H-1B visa holders, particularly in the technology sector. The fee hike, coupled with stricter immigration policies and widespread tech-sector layoffs, had raised concerns among Indian professionals seeking employment in the United States.
Earlier this year, External Affairs Minister S. Jaishankar raised visa-related concerns with US Secretary of State Marco Rubio. Rubio acknowledged that immigration reforms could create temporary “friction points” but insisted that the changes were not specifically targeted at India.
The H-1B programme currently provides 65,000 visas annually, with an additional 20,000 visas reserved for applicants holding advanced degrees from US institutions. The visas generally allow skilled foreign workers to remain in the country for three to six years.
