A federal judge has struck down U.S. President Donald Trump’s controversial $100,000 fee on new H-1B visas, ruling that the charge was an unlawful tax that lacked congressional approval.

Leo Sorokin, a federal judge in Boston, issued the ruling in a lawsuit brought by 20 Democratic state attorneys general challenging the fee announced by Trump in September.

The administration had argued that the payment was a lawful penalty designed to restrict foreign workers entering the United States. However, Sorokin concluded that the fee functioned as a tax rather than a penalty and therefore could not be imposed without authorisation from Congress.

The judge also cited a recent U.S. Supreme Court ruling that struck down Trump’s broad tariff measures, saying the same legal principle applied in this case.

What Is The H-1B Visa?

The H-1B programme allows U.S. employers to hire highly skilled foreign workers, particularly in technology, engineering and other specialised fields.

The programme issues 65,000 visas annually, with an additional 20,000 reserved for applicants holding advanced degrees. Before Trump’s fee increase, employers typically paid between $2,000 and $5,000 in visa-related charges.

Trump had argued that the programme was being exploited to replace American workers with lower-paid foreign labour and introduced the $100,000 fee as part of a broader immigration crackdown.

Legal And Political Fallout

The White House said it would appeal the ruling, insisting Trump had clear authority to restrict categories of foreign nationals entering the United States.

Meanwhile, Rob Bonta, who led the coalition of states challenging the fee, welcomed the decision and described the measure as an unlawful tax that harmed America’s ability to attract global talent.

Government data showed that only 85 employers had paid the fee by mid-February, suggesting limited use of the policy since its introduction.

The ruling marks another legal setback for Trump’s efforts to reshape immigration policy and tighten restrictions on foreign workers.

(with inputs from Reuters)