A federal appeals court has refused to revive the Trump administration’s $100,000 fee on new H-1B work visas, dealing a fresh legal setback to efforts by the White House to overhaul the high-skilled immigration program. According to the Boston-based 1st US Circuit Court of Appeals, the government failed to demonstrate it was likely to succeed in arguing that the executive branch held the authority to impose the steep charge on employers.
Court Blocks H-1B Visa Fee Over Executive Authority Limits
The three-judge panel declined to pause a lower court ruling that blocked the $100,000 charge while the administration appeals the decision. The ruling preserves an earlier decision by US District Judge Leo Sorokin, who determined that the payment functioned as a tax rather than a standard regulatory fee.
“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 June ruling. President Donald Trump introduced the charge in September 2025 during a broader immigration enforcement push, asserting at the time that the H-1B program had been exploited to replace American workers with lower-paid, lower-skilled foreign labor.
Impact on Technology Employers and Foreign Talent Recruitment
The H-1B program typically grants roughly 65,000 visas annually, with an additional 20,000 reserved for applicants holding advanced degrees. Technology firms rely heavily on the system to recruit specialized international talent. Prior to the administration’s policy change, employers generally paid between $2,000 and $5,000 in administrative and legal fees per application.
Court records indicate that the dramatic price increase severely dampened demand. By mid-February, US Citizenship and Immigration Services had collected very few payments under the new fee structure. Brian Hunt, an immigration policy compliance lawyer with Fragomen, Del Rey, Bernsen & Loewy, LLP, noted that the overall reach of the court’s decision remains difficult to quantify because the majority of US employers sponsor H-1B applicants who are already residing inside the country.
“In light of the 100k fee, there are some workers who were about to lose their job offer but can now get a visa after all,” Hunt told Business Insider.
Legal Challenges and Next Steps
The federal lawsuit halting the fee was initiated by a coalition of 20 Democratic state attorneys general who argued the administration overstepped its statutory powers. The White House did not immediately respond to requests for comment following the 1st Circuit panel’s decision.
With the injunction remaining active, the litigation returns to the lower courts for further proceedings on the merits of the administration’s authority. Employers continue to rely on traditional fee schedules while the legal battle over executive powers proceeds.
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