A federal judge has blocked a Trump administration policy that sought to impose a $100,000 fee on employers filing new H-1B visa petitions. U.S. District Judge Leo Sorokin ruled that the administration did not have the legal authority to create the fee, finding that it exceeded powers granted by Congress under federal law.
The administration had argued that the fee was designed to reduce misuse of the H-1B visa program and encourage companies to prioritize hiring American workers. However, Judge Sorokin concluded that the payment functioned more like a tax than a regulatory fee, and therefore required congressional authorization before it could be implemented.
The ruling represents a setback for broader efforts to reform the H-1B visa system, which allows U.S. employers to hire foreign professionals in specialized fields. Established by Congress in 1990, the program is widely used by technology companies, healthcare organizations, engineering firms, and other industries that rely on highly skilled workers.
Supporters of the H-1B program argue that it helps businesses address workforce shortages and maintain competitiveness in global markets. Critics, meanwhile, contend that the program can place pressure on wages and reduce employment opportunities for some domestic workers, leading to ongoing debate about potential reforms.
Under the challenged policy, the $100,000 fee was intended to discourage unnecessary reliance on foreign labor and encourage greater investment in recruiting and training U.S. workers. Business groups and immigration advocates opposed the measure, arguing that it would create significant financial barriers for employers seeking to hire qualified international talent through legal immigration channels.
The lawsuit was brought by employers and industry organizations that argued the administration lacked authority to impose such a substantial fee without congressional approval. Judge Sorokin agreed with those arguments, emphasizing that revenue-generating measures generally require legislative authorization. The administration is expected to appeal the decision, setting the stage for further legal proceedings over immigration policy and executive authority.