Appeals Court Blocks Trump Administration H-1B Visa Fee

The 1st U.S. Circuit Court of Appeals in Boston rejected a bid by the Donald Trump administration to halt a lower court ruling that blocked a $100,000 fee on new H-1B visas. On July 24, 2026, a three-judge panel denied the administration's motion to stay a June 8 order by U.S. District Judge Leo T. 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 to discourage companies from hiring foreign labor over American workers, though the fee did not apply to foreign nationals already in the U.S. on student visas. The appeals court determined that the administration failed to prove that Congress had clearly authorized such a financial burden, meaning the fee cannot be enforced while the legal challenge continues.

The lawsuit was originally filed by attorneys general from 20 Democratic-led states. Massachusetts Attorney General Andrea Joy Campbell described the ruling as a victory for the integrity of the visa program, specifically noting its importance for employers in healthcare, education, and medical research.