Federal Judge Strikes Down Trump's $100,000 H-1B Visa Fee — What Employers Should Know

In a major win for employers of high-skilled foreign workers, a federal judge has voided the Trump administration's $100,000 surcharge on new H-1B visas. On June 8, 2026, U.S. District Judge Leo Sorokin ruled that the fee was an unauthorized tax imposed without congressional approval.

What the Court Decided

Judge Sorokin held that the $100,000 charge violated the Administrative Procedure Act and exceeded executive authority. The decision turned on a key distinction between a regulatory fee and a tax:

• A regulatory fee covers the cost of an agency service.

• A tax raises revenue — and under the Constitution, the power to tax belongs to Congress.

Because the surcharge raised revenue rather than simply covering processing costs, the court concluded it was effectively a tax the President could not impose on his own.

Background: How the Fee Came About

The fee originated with Presidential Proclamation 10973, “Restriction on Entry of Certain Nonimmigrant Workers,” signed September 19, 2025 and implemented September 21, 2025. Employers seeking new H-1B workers had to pay a $100,000 surcharge on top of standard filing fees, which typically run from roughly $2,000 to $5,000. The challenge was brought by 20 states, which argued the fee created severe hiring barriers in technology, healthcare, research, and other fields that rely on H-1B talent.

What This Means for Employers

• The fee is currently voided — new H-1B petitions are no longer subject to the $100,000 surcharge under this ruling.

• An appeal is expected; a White House spokesperson indicated the administration intends to appeal.

• Reimposition through formal notice-and-comment rulemaking remains possible.

Practical takeaways

• If you delayed H-1B filings because of the surcharge, it may be time to revisit your hiring plans.

• If you already paid the fee, ask about whether refunds or credits may become available as the litigation develops.

• Build flexibility into your timeline — an appeal or new rulemaking could alter the landscape again.

How Vartanian Law Firm Can Help

H-1B rules are shifting quickly, and this ruling may not be the final word. Vartanian Law Firm can help employers assess how the decision affects pending and planned petitions, evaluate refund questions, and prepare for the possibility of an appeal or new rulemaking. Contact us to discuss your H-1B strategy.

This post is for general information only and is not legal advice.