A federal judge's decision to strike down President Donald Trump's controversial $100,000 H-1B visa fee removes a major cost burden for large technology employers that continue to rely heavily on skilled foreign talent.
Federal Judge Blocks Trump's H-1B Visa Fee
On Monday, U.S. District Judge Leo Sorokin in Boston ruled that the Trump administration lacked authority to impose the massive fee on certain new H-1B visa applications, calling the payment effectively a tax that Congress never authorized.
"Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called," Sorokin wrote in his ruling.
The administration had argued the fee was a lawful penalty intended to curb overreliance on foreign labor and protect American workers. However, the court determined immigration law did not give the president unilateral power to create such a charge.
White House spokesperson Taylor Rogers, in an emailed statement, pushed back against the ruling, saying the administration remains confident the decision will be overturned.
"President Trump has clear legal authority to restrict entry of any class of aliens he determines is not in America's best interests, and that is exactly what he did," Rogers said.
The White House did not immediately respond to Benzinga’s request for comments.
Big Tech's Heavy Dependence On H-1B Workers
The ruling comes as major technology companies continue to dominate H-1B hiring.
According to an analysis by the National Foundation for American Policy using U.S. Citizenship and Immigration Services data, Amazon.com, Inc. (NASDAQ:AMZN) led all companies with 4,644 approved new H-1B petitions for initial employment in fiscal 2025.
Meta Platforms, Inc. (NASDAQ:META) followed with 1,555 approvals, while Microsoft Corp (NASDAQ:MSFT) and Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google recorded 1,394 and 1,050 approvals, respectively.
The H-1B program allocates 65,000 visas annually, plus another 20,000 for workers with advanced degrees.
Broader Immigration Fight Continues
Trump introduced the fee through a September proclamation, arguing companies had exploited the program to replace American workers with lower-cost labor.
California Attorney General Rob Bonta, who led a coalition of Democratic attorneys general challenging the policy, praised the ruling.
"This tax was an attack on America’s ability to attract and retain the high-skilled talent that strengthens our economy and helps us meet critical workforce needs," Bonta said, according to a Reuters report.
The administration is expected to appeal.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Joey Sussman on Shutterstock.com
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