A federal judge on June 8, 2026 struck down President Donald Trump’s $100,000 H-1B visa fee, ruling it functions as an unconstitutional tax that the executive branch has no authority to impose without congressional approval.
U.S. District Judge Leo Sorokin, who was appointed by former President Barack Obama, issued the 42-page ruling from Boston, handing a comprehensive victory to 20 Democratic state attorneys general who brought the challenge. The decision vacates the policy entirely.
“The substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called,” Sorokin wrote.
The Tax Question at the Heart of the Ruling
Sorokin determined that while the Immigration and Nationality Act grants presidents broad discretion over the entry of noncitizens, that power does not extend to levying taxes. He found that federal agencies violated the Administrative Procedure Act by bypassing notice-and-comment rule making.
“While the Executive has broad discretion over the admission and exclusion of aliens, … that discretion is not boundless,” Sorokin wrote, adding that the policy “imposes a tax on H-1B petitions without the requisite delegation by Congress.”
The judge cited a Supreme Court ruling that found tariffs Trump imposed were taxes and that the president lacked authority to impose them. The Trump administration had argued the executive branch could impose the charge as a financial penalty under the president’s power to restrict entry of foreigners deemed “detrimental to the interests of the United States.”
A Six-Figure Barrier for Skilled Workers
Trump unveiled the fee in September 2025, catapulting the cost of a new H-1B visa from the typical $2,000–$5,000 to $100,000. The visas serve as a lifeline for technology companies, universities, hospitals and other employers seeking highly skilled foreign talent. Each year, the federal government issues 65,000 such visas, with an additional 20,000 reserved for workers with advanced degrees.
The September proclamation contended that H-1B holders undercut American workers by suppressing wages and that science, technology, engineering and math fields were being saturated by foreign labor. Court filings detailed immediate disruption, with few employers willing to pay the new charge. On a Dubai-bound Emirates flight in San Francisco, some passengers demanded to get off the plane, fearing they would be locked out of the country if they left.
While building a six-figure barrier for engineers and scientists, the administration simultaneously launched a parallel program for the ultrawealthy. Trump championed the “Gold Card” visa on September 19, 2025, which offers wealthy foreigners and corporations expedited entry into the United States for a $1 million payment.
A MAGA Civil War Over Foreign Talent
The ruling sits at the center of a prolonged feud within Trump’s political coalition. Silicon Valley conservatives, spearheaded by Elon Musk — himself a former visa holder — contend that foreign engineers and scientists are critical to American leadership in artificial intelligence and advanced manufacturing. Nationalist hardliners view the program as a wage-suppression scheme. Steve Bannon has characterized H-1B as a vehicle for replacing American workers with cheaper foreign labor, while Fox News host Laura Ingraham has argued companies use the visas to bypass U.S. graduates.
During an interview with Ingraham in October 2025, Trump inflamed his base by defending the visa, conceding the country did not have enough talented workers. He later doubled down at a U.S.-Saudi investment forum, pointing to massive chip manufacturing projects in Arizona that require imported expertise to get off the ground.
Another Judicial Setback
The H-1B decision continues a pattern of judicial setbacks for the administration. In 2025, Sorokin became the fourth judge to issue a nationwide injunction blocking Trump’s executive order seeking to limit birthright citizenship, finding the policy likely unconstitutional under the 14th Amendment. That dispute has since reached the Supreme Court, where a ruling is expected.
Trump himself responded Monday evening with criticism of the judiciary. “These federal judges are really giving us a hard time,” he said. “They’re hurting our country very badly.”
White House Spokesperson Taylor Rogers signaled the administration would appeal, stating that Trump has clear legal authority to restrict entry of any class of aliens he determines is not in America’s best interests.
Since returning to office, Trump has pursued a sweeping immigration crackdown that includes tighter visa rules, expanded deportation initiatives and efforts to limit asylum access. The forthcoming appeal of Sorokin’s H-1B decision is poised to test, once again, just how far executive power can stretch before colliding with the Constitution’s clear assignment of taxing authority to Congress.