Appeals Court Blocks Trump's $100,000 H-1B Visa Fee

The 1st U.S. Circuit Court of Appeals in Boston rejected a bid by the Donald Trump administration to reinstate a $100,000 fee on new H-1B visa petitions. On July 24, 2026, a three-judge panel denied a motion to stay a June 8 order from U.S. District Judge Leo Sorokin, who had ruled that the fee constituted an unlawful tax not authorized by Congress and violated the Administrative Procedure Act.

President Trump introduced the fee via a September 2025 proclamation, claiming the visa program was being exploited to replace American workers with lower-paid foreign labor. The policy exempted foreign nationals already in the United States on student visas. However, the appeals court determined that the administration failed to prove Congress had delegated the authority to impose such a financial burden.

The legal challenge was originally filed by attorneys general from 20 Democratic-led states. Massachusetts Attorney General Andrea Joy Campbell praised the decision, stating it protects the program's integrity as a tool to address labor shortages in healthcare, education, and medical research. The fee remains unenforceable while the legal challenge continues.