Trump Dealt Blow as H-1B Fee Deemed Unauthorized Tax

President Donald Trump’s $100,000 H-1B application fee was struck down by a federal judge Monday, who said the heightened cost for the high-skilled work visa was effectively a tax Trump had no authority to impose.

In a 42-page ruling, Massachusetts District Judge Leo Sorokin, an Obama appointee, said that the fee, which was introduced through executive order in September, violated the separation of powers. Similar arguments have been made about the Trump administration‘s other immigration enforcement efforts.

Trump introduced the new fee in September after months of debate among his own party around the visa, which has drawn criticism and accusations of abuse for years.

The president has been a visible fan of legal, skilled migration and touted the new fee as a way to ensure the H-1B went to talented individuals who could help the U.S. thrive. Critics said companies would be unwilling to pay the $100k, and following implementation, reports suggested new applications had dropped off.

Newsweek reached out to the White House and the Department of Homeland Security (DHS) for comment via email Monday afternoon.

Why the Judge Blocked the Policy

The ruling turns on a core constitutional issue: whether the executive branch can attach a massive financial requirement to visa applications. Sorokin concluded that the answer is no.

The judge determined the $100,000 payment functions as a tax, not just a regulatory fee, noting that it is imposed on lawful activity and generates revenue. Under the Constitution, the power to tax rests with Congress, not the President.

"The President has no authority to levy a tax unless such a power is delegated by Congress," the ruling states.

While immigration law gives the president broad authority to restrict entry into the United States, the court found those powers do not extend to imposing taxes. The provisions cited by the administration allow the executive to set "restrictions," "rules," and "limitations," but do not clearly authorize taxation.

"None of these terms, by their ordinary meaning, include the power to tax," the judge wrote.

This is a breaking news story. Updates to follow.

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This story was originally published June 8, 2026 at 12:24 PM.