The White House is now planning to appeal the decision.
America’s battle over immigration policy has spilled back into the courtroom.
According to Reuters, a federal judge has blocked one of the Trump administration’s most controversial visa measures, ruling that a $100,000 charge imposed on certain high-skilled foreign workers was not legally authorized and could not be enforced.
Decision marks a significant setback for an administration that has sought to reshape immigration policy through executive action while tightening access to work visas.
Court Says Fee Was Really a Tax
U.S. District Judge Leo Sorokin ruled that the administration’s massive charge on new H-1B visa applications amounted to a tax rather than a lawful immigration penalty.
H-1B visas are commonly used by technology companies and other employers seeking to hire highly skilled foreign workers.
Administration officials had argued that federal immigration law gave the president broad authority to restrict entry for foreign nationals if doing so served the interests of the United States.
Sorokin disagreed.
“Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called,” the judge wrote.
According to the ruling, Congress never authorized the president to impose such a tax, meaning federal agencies could not legally collect it.
States Challenged the Policy
Lawsuit was brought by a coalition of 20 Democratic attorneys general who argued that the fee dramatically increased costs for employers while undermining access to skilled workers.
Before the policy was introduced, companies typically paid between $2,000 and $5,000 in government fees when sponsoring an H-1B employee.
Trump defended the measure when it was announced, arguing that the visa system had been exploited by employers seeking cheaper labor instead of supplementing the American workforce.
Despite the administration’s efforts, relatively few companies chose to pay the new charge. Government filings showed that only dozens of payments had been received months after the policy took effect.
White House Plans Appeal
Administration officials quickly signaled that they intend to challenge the ruling.
White House spokeswoman Taylor Rogers defended the policy and argued that the president acted within his authority.
“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,” she said.
Sorokin’s ruling drew support from Democratic officials who led the legal challenge.
California Attorney General Rob Bonta welcomed the decision and criticized the administration’s approach.
“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.
Broader Immigration Fight Continues
Legal dispute is part of a wider battle over the future of the H-1B program and immigration policy more broadly.
Alongside the fee, the Trump administration has pursued stricter vetting procedures and proposed changes that would favor higher-paid and more highly skilled applicants.
Appeal is expected, meaning the fight over the visa fee is likely headed to a higher court as both sides continue to argue over how much authority the White House has to reshape immigration policy without congressional approval.