Federal Judge Leo Sorokin on Monday ruled that the Trump administration’s $100,000 fee on H‑1B visa applications is unlawful and must be rescinded. The proclamation, issued in September, sought to raise the cost of non‑immigrant work visas to deter companies from hiring foreign talent. Tech firms and specialist industries, which together received over 400,000 approvals last year, face immediate uncertainty.

Before the hike, employers paid $215 to enter the lottery and $780 for sponsorship. Officials argued the fee would ensure only “very highly skilled” workers entered, citing layoffs of American employees. Sorokin called the charge an unauthorised tax that infringes Congress’s power to raise revenue, rejecting the Justice Department’s broad defense. The ruling also signals heightened judicial scrutiny of immigration monetisation.

The Department of Justice said it will appeal, though it declined to confirm further action. A prior Washington ruling had upheld the fee, but Sorokin referenced the Supreme Court’s recent trade‑tariff decision as precedent. With the injunction in place, companies must revert to the pre‑September fee structure, preserving the existing labor‑market dynamics for H-1B talent for U.S. employers in the short term.