A U.S. federal court on Monday invalidated President Donald Trump’s imposition of a $100,000 fee on new H-1B visa applications for foreign skilled workers, declaring it unconstitutional.

The ruling by District Judge Leo Sorokin in Boston followed a lawsuit in December by 20 state attorneys general challenging Mr Trump’s September 2025 executive order raising the fee from $5,000 to $100,000.

“The policy implementing the proclamation is declared unlawful and is vacated in its entirety,” Mr Sorokin said in the 42-page ruling.

Mr Trump raised the fee amid his immigration crackdown. The president said companies had exploited the scheme to bring in foreign workers who would accept lower wages, to the detriment of qualified Americans.

Since returning to the White House last year, Mr Trump has moved to limit immigration into the U.S., citing a high rate of visa overstays and identity fraud, among other issues.

The H-1B visa programme, launched in 1990 by Congress, allows U.S. companies in sectors ranging from healthcare to engineering, manufacturing, finance, and business services to employ specialised foreign workers.

The programme provides 65,000 visas annually, with an additional 20,000 for people with advanced degrees.

Prior to Mr Trump’s proclamation, the H-1B visa fee ranged from $5,000 to $6,000, depending on factors such as company size. 

Under the programme, employers may sponsor foreign workers to work in the U.S. for an initial period of three years, extendable for another three years while they pursue permanent residency.

The plaintiffs argued that the policy was unlawful because it exceeded Mr Trump’s statutory powers, as Congress had not authorised it.

They also contended that the additional fee would worsen shortages of skilled workers, particularly in healthcare facilities and other institutions that rely on foreign professionals.

In defence of the proclamation, the Trump administration cited sections 212(f) and 215(a) of the Immigration and Nationality Act (INA), which allows the president to restrict the entry of foreign nationals into the U.S.

However, Mr Sorokin declared that Mr Trump lacked the authority to change immigration policy, as Congress had not approved such a change. The judge considered the fee to be a tax.

“The president had no power or delegated authority to impose a tax on H-1B petitions,” the judge said. “Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called.”