Key Points:

IN A MAJOR SETBACK to the Trump administration, a United States federal court on June 8, 2026, quashed the proposal to levy a $100,000 application fee on H-1B visas. The proposed one-time fee for new petitions was announced on September 19, 2025, causing immense panic across various sectors that it would affect the hiring of skilled foreign talent in the United States. 

According to reports, the administration's overhaul of the H-1B visa programme was a move that exceeded its authority. A federal judge stated that the ruling administration under President Donald Trump did not possess the legal authority to impose the whopping $100,000 fee on H-1B visa applications, especially without the approval of Congress. 

The H-1B visa is a form of non-immigrant work visa that allows employers to hire skilled foreign workers in specialised occupations. According to reports, of the total 399,395 H-1B visas approved in 2024, more than 70% were granted to Indian nationals.

The Trump administration argued that the visa programme was being misused and was reducing employment opportunities for American workers. In December 2025, more than 20 US states came together to oppose the application fee on the visa programme. 

See Also: H-1B Debacle and the Relevance of Dual Citizenship for Indians

Why Did the Federal Judge Strike Down the $100,000 H-1B Visa Fee?

In a 42-page ruling, US District Judge Leo T. Sorokin of Massachusetts rejected the argument that the US President has the legal authority to impose a $100,000 fee as a condition for entry into the country. Sorokin wrote, "While the Executive has broad discretion over the admission and exclusion of aliens, . . . that discretion is not boundless."

He continued that the President cannot violate the US Constitution or exceed "the statutory authority conferred by Congress." 

The court ruled that, "The policy imposes a tax on H-1B visa petitions without the requisite delegation by Congress. Hence, the policy implementing the proclamation is declared unlawful and is vacated in its entirety." 

H-1B Visa Rejection: Not the First Time for Trump

Previously, the Trump administration faced another setback in February 2026 after the US Supreme Court struck down Trump's global tariff measures. In its landmark ruling, the court stated that the International Emergency Economic Powers Act (IEEPA) does not grant the President the authority to impose tariffs at will.

Trump's tariff war with the rest of the world was effectively paused following the court's decision. The POTUS had claimed that the global tariff move was vital to the country's economic security. 

Now that the H-1B visa application fee has been rejected by the US federal court, the aftermath will likely have a positive impact on Indian visa holders. The H-1B visa acts as a vital method for US employers to hire skilled workers from other countries, especially in specific sectors such as healthcare, finance, technology, and engineering.

The H-1B fee was regarded as a major blow to foreign workers and could lead to labour shortages across different fields. Trump has previously acknowledged that the country needs foreign talent. "You don't have certain talents," said Trump in a Fox News interview with host Laura Ingraham. 

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