A federal judge struck down President Donald Trump’s $100,000 fee on H-1B visas on Monday, June 8, 2026, handing a major reprieve to the technology companies, hospitals, universities, and research institutions that depend on the program to hire highly skilled foreign workers.

In a 42-page ruling, U.S. District Judge Leo Sorokin of Massachusetts agreed with the plaintiffs that the fee amounted to an unauthorized tax rather than a standard regulatory charge.

“The President has no authority to levy a tax unless such a power is delegated by Congress through statute,” Sorokin wrote.

The challenge was brought by a coalition of 20 state attorneys general, who argued that the administration exceeded its authority by imposing such a dramatic fee increase without congressional approval.

The judge relied in part on recent Supreme Court precedent limiting executive authority to impose taxes and similar charges absent clear authorization from Congress.

The fee represented a dramatic increase from what employers traditionally paid.

Before the change, companies generally spent several thousand dollars to obtain an H-1B visa. The administration argued that dramatically increasing the cost would discourage overreliance on foreign labor and encourage employers to hire American workers instead.

Supporters said the fee would help protect domestic jobs.

Critics said it would effectively shut off access to specialized talent needed by many industries.

The numbers suggest the fee had a substantial impact.

According to government figures, only 85 payments of the $100,000 fee had been received as of mid-February, a remarkably small number for a visa program that typically supports tens of thousands of workers annually.

For employers, Monday’s ruling removes a significant obstacle.

The H-1B program provides 65,000 visas annually, plus an additional 20,000 visas for workers holding advanced degrees. Technology companies, hospitals, universities, pharmaceutical firms, and engineering companies rely heavily on the program to recruit specialized talent.

The fight, however, is not over.

The administration immediately signaled its intention to appeal the ruling, arguing that the policy remains an important part of broader efforts to prioritize American workers.

Separately, the U.S. Chamber of Commerce and other business groups continue to challenge the policy through additional legal actions.

The stakes are substantial on both sides.

Supporters view stricter visa policies as a way to encourage domestic hiring and workforce development. Opponents argue that limiting access to highly skilled workers ultimately weakens American competitiveness and could push innovation, research, and investment overseas.

The ruling also affects thousands of prospective workers around the world, particularly in countries such as India, where many professionals seek employment opportunities in the United States through the H-1B program.

For now, the visa program returns to its previous cost structure.

But with appeals already expected and multiple legal challenges still working their way through the courts, businesses face the same challenge they often dislike most: uncertainty.

Companies planning hiring needs months or years in advance must now determine whether Monday’s victory represents a permanent change or merely a temporary pause in a much larger legal battle.

JBizNews Desk

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