Why US Judge called Trump's $100,000 H-1B visa fee unconstitutional tax?

New York (USA), June 9: A federal judge in the United States has struck down former President Donald Trump's controversial $100,000 fee on new H-1B visa applications, ruling that the charge amounted to an unlawful tax imposed without congressional approval.

In a 42-page decision, U.S. District Judge Leo Sarkin vacated the fee, concluding that the executive branch lacked the constitutional authority to levy such a charge.

The ruling came in response to a legal challenge brought by 20 Democratic state attorneys general, who argued that the fee would harm institutions and industries dependent on highly skilled foreign workers.

The fee was introduced by the Trump administration in September last year through a presidential proclamation.

The administration defended the measure as part of a broader effort to prioritize American workers and reduce reliance on foreign labor, arguing that the H-1B program had facilitated the displacement of U.S. employees in some sectors.

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However, Judge Sarkin found that the fee functioned as a tax rather than a regulatory measure. The U.S. Constitution grants Congress, not the president, the exclusive authority to impose taxes, the ruling stated.

Victory for Tech Inc.

The nationwide ruling is being viewed as a significant victory for technology companies, universities, schools, hospitals, and other employers that rely on the H-1B visa program to recruit skilled professionals from abroad.

The H-1B program currently provides 65,000 visas annually, along with an additional 20,000 visas reserved for workers holding advanced degrees. These visas are generally granted for periods ranging from three to six years.

Before the fee was introduced, employers typically paid between $2,000 and $5,000 in application-related costs, depending on the circumstances of the petition. The proposed $100,000 charge would have represented a dramatic increase in hiring costs for foreign workers.

Despite the fee, more than 200,000 individuals applied for H-1B visas in fiscal year 2026. Indian nationals continued to dominate the program, accounting for approximately 71 percent of all H-1B approvals.

Chinese nationals ranked second at nearly 12 percent. Together, India and China represented more than 80 percent of approved H-1B visa recipients, while no other country apart from Canada accounted for as much as 2 percent individually.

White House Reaction

The White House has indicated that the administration is confident the ruling will be overturned and is expected to appeal the decision in a higher court.

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The case is likely to become a major test of presidential authority over immigration-related fees and could have significant implications for U.S. employers, foreign workers, and the future of the H-1B visa system.

Ends.