Federal Court Blocks $100,000 Trump-Era H-1B Visa Fee
A federal court struck down the $100,000 H-1B visa fee as unlawful under the APA.
Why it matters: Employers and immigration professionals must adjust hiring plans and cost forecasts due to this legal change. It signals continued judicial scrutiny on executive visa fee policies bypassing legislative procedures.
- U.S. District Judge Haywood S. Gilliam Jr. issued a preliminary injunction on Sept 30, 2026, blocking enforcement of the $100,000 H-1B fee.
- The fee was imposed by Trump’s presidential proclamation in September 2025 targeting new H-1B visa applicants.
- Judge Gilliam found DHS violated the Administrative Procedure Act by avoiding proper notice-and-comment rulemaking.
- This ruling follows a June 2026 Massachusetts federal court decision that also invalidated the fee as an unauthorized tax.
- H-1B visas are critical for employers hiring foreign workers in specialty occupations requiring at least a bachelor’s degree.
On September 30, 2026, U.S. District Judge Haywood S. Gilliam Jr. of the Northern District of California issued a preliminary injunction preventing the Department of Homeland Security (DHS) from enforcing the $100,000 fee on new H-1B visa applications. This fee, introduced by President Donald Trump through a presidential proclamation in September 2025, sharply increased costs for employers hiring specialized foreign talent in the U.S.
Judge Gilliam ruled that DHS failed to comply with the Administrative Procedure Act (APA) because it did not engage in the required notice-and-comment rulemaking process before imposing the fee. The court found the agency’s guidance on implementing the fee to be arbitrary and capricious.
This injunction follows a similar decision earlier in 2026. On June 8, U.S. District Judge Leo Sorokin in Massachusetts struck down the fee, calling it an unlawful tax that Congress never authorized. Judge Sorokin stated, "The substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called." The June ruling emphasized that the presidential action amounted to an unauthorized taxing power.
H-1B visas enable U.S. employers to hire foreign workers in specialty occupations that require specialized knowledge and typically at least a bachelor’s degree. The $100,000 fee was intended by the Trump administration to discourage hiring foreign labor by dramatically raising application costs. However, the recent federal court rulings highlight the judiciary’s role in ensuring executive branch actions comply with procedural legal standards and congressional authority.
The Department of Homeland Security’s response to these injunctions remains unreported, and it is unclear whether the government will appeal the rulings or seek to modify the fee.
By the numbers:
- $100,000 — fee imposed on new H-1B visa applications by Trump presidential proclamation in September 2025
- September 30, 2026 — date of the California federal court’s preliminary injunction against the fee
- June 8, 2026 — date of Massachusetts federal court decision invalidating the fee
What's next: Possible appeals or modifications by the Department of Homeland Security following the injunctions remain to be seen.