The H-1B visa fee imposed by the Trump administration has been struck down by a federal judge, who declared the $100,000 charge unlawful and likened it to an illegal tax. The decision, issued Monday, deals a setback to one of the administration’s efforts to narrow a key channel for legal immigration.

The Ruling and Its Reasoning

U.S. District Judge Leo T. Sorokin of Massachusetts found that the fee overstepped the bounds of executive authority. In his view, the $100,000 charge effectively encroached on powers that belong to Congress, namely the authority to set immigration policy and to raise revenue.

The case was brought by California Attorney General Rob Bonta alongside 19 other states. Sorokin essentially agreed with their argument, concluding that the payment amounted to a tax dressed up as a fee, and that imposing such a tax without congressional approval was not something the administration could do on its own.

Why the Fee Mattered

The H-1B program is a major pathway for bringing highly skilled workers into the United States, and the fee threatened to sharply curtail it. The visas are widely used by:

• Silicon Valley technology companies
• Hospitals
• Universities

To put the cost in perspective, H-1B application fees rarely topped $5,000 per worker before Trump’s order, not counting legal expenses. Universities and nonprofits typically paid less than private employers. A jump to $100,000 represented an enormous increase that would have priced many sponsors out of the program.

A Mixed Legal Record

This isn’t the first courtroom test of the fee. The U.S. Chamber of Commerce had mounted its own challenge in a separate lawsuit, but late last year the court sided with the Trump administration in that case. Monday’s ruling marks a different outcome and a win for the states that pursued it.

What Comes Next

The administration is expected to appeal the decision. The White House has defended the policy in forceful terms, with spokeswoman Taylor Rogers arguing that the president has clear legal authority to restrict the entry of any group of foreign nationals he deems contrary to the country’s interests. She characterized the H-1B program as one that has been abused for decades and framed the fee as Trump’s effort to finally address that.

With an appeal looming, the fate of the fee is far from settled. For now, though, employers across tech, health care, and higher education can continue using the H-1B pathway without facing the six-figure charge. This remains a developing story.