Arizona, 19 states win legal victory after judge strikes down Trump's $100,000 fee on H-1B visas

A federal judge on Monday struck down the Trump administration's $100,000 fee on new H-1B visas, contradicting an earlier federal court ruling upholding the fee hike.

The administration announced the much-higher fee as a way of preventing foreign workers from taking American jobs.

But U.S. District Court Judge Leo Sorokin in Boston sided with 20 states, including Arizona, and struck down the visa policy, concluding that the executive branch exceeded its authority and violated the Administrative Procedure Act, which governs how federal agencies develop and issue regulations.

“The Court finds that the Policy imposes a tax on H-1B petitions without the requisite delegation by Congress,” Sorokin wrote.

H-1B visas are meant for high-skilled jobs that are difficult to find American workers to fill. Deep-pocketed technology companies are the biggest users, with nearly three-quarters of approvals going to workers from India. The states argued that using the H-1B program to fill vacancies for much-needed doctors and teachers was already difficult before the higher fee.

Most H-1B visa applications cost several thousand dollars before the announced increase set off a wave of panic among confused employers, students and workers in the United States and abroad and led to several lawsuits, including in Boston.

The U.S. Chamber of Commerce also sued, in federal court in Washington, D.C., and has appealed a denial of a summary judgment against the fee hike. That left the higher fee in effect, at least until September 2026, when it is scheduled to expire. Monday's ruling is also a summary judgment, to the opposite effect. Still another lawsuit was filed in federal court in San Francisco, by religious groups and labor organizations, setting up the possibility of divided rulings in three appellate court circuits.

In the Boston case, the states argued that the policy impedes their ability to hire primary and secondary school educators and to staff public colleges and universities, will stymie academic research and will lead to a decline in medical workers.

Arizona Attorney General Kris Mayes had also argued it would hurt Arizona businesses, including those in the booming semiconductor industry, that are facing staffing shortages.

“The Trump administration had no authority to unilaterally impose a $100,000 tax that Congress never approved — and today, a federal court agreed,” Mayes said in a statement. "This illegal tax threatened our rural school districts, our growing semiconductor industry, and Arizona's entire economy.”

Bobby Mukkamala, the president of the American Medical Association, called the ruling “a victory for patients.”

“At a time when communities across the country face physician shortages and growing barriers to care, we should be removing obstacles — not creating new ones — to attract talented physicians and other highly skilled professionals,” Mukkamala said. “International medical graduates play a vital role in caring for patients, particularly in underserved and rural areas.”

A Department of Homeland Security statement said the agency disagrees with “this blatant judicial activism dismantling President Trump’s historic efforts for immigration reform.”

“Under President Trump and Secretary Mullin, our immigration system is being reformed to serve American citizens, American workers, and American families and to preserve our national identity — not to rapidly import foreigners who take American jobs, commit crimes, burden our welfare system, and erode our cultural and social fabric," the statement said, referring to Homeland Security Secretary Markwayne Mullin.

In a separate statement, White House spokesperson Taylor Rogers said the administration "is confident this order will be reversed on appeal.”