First Circuit declines to pause lower court ruling that struck down the charge as an unlawful tax on skilled foreign workers.
A federal appeals court has rejected an attempt by the Trump administration to reinstate a controversial $100,000 fee on new H-1B visas for highly skilled foreign workers.
On Friday, the Boston-based 1st US Circuit Court of Appeals declined to put on hold a June ruling by a district court judge that had struck down the fee. The lower court had found that the charge amounted to an unlawful tax that Congress had never authorised.
$100,000 H-1B Visa Fee Remains Blocked:
The $100,000 fee was introduced through a presidential proclamation in September 2025 and applied to new H-1B visa petitions for foreign professionals seeking temporary employment in the United States, particularly in technology, healthcare, and academia. The administration argued the measure was necessary to protect American workers and discourage companies from replacing domestic employees with lower-paid foreign labour.
A coalition of 20 Democratic state attorneys general, led by California, challenged the policy in federal court in Massachusetts. They argued that the fee exceeded presidential authority and violated the separation of powers by imposing a tax without legislative approval. In June, US District Judge Leo T. Sorokin sided with the states and vacated the fee “in its entirety.”
H-1B Fee Remains Suspended After Ruling:
The Trump administration appealed the decision and sought an emergency stay to keep the fee in place while the full appeal proceeds. The First Circuit’s rejection of that request means the district court’s order remains in effect nationwide for now.
The H-1B programme allows US employers to hire foreign workers in specialty occupations that typically require at least a bachelor’s degree. It has long been a key pathway for tech companies, universities, and hospitals to recruit international talent, though it has also drawn criticism for alleged abuse and wage suppression.
Business groups and higher education institutions welcomed the latest court decision, saying the high fee would have severely restricted their ability to attract skilled workers. The administration has maintained that the president has broad authority over immigration and that the fee was a legitimate tool to prioritise American workers.
The case is one of several legal challenges to the $100,000 H-1B fee. Separate lawsuits are proceeding in other federal courts, raising the possibility of conflicting rulings that could eventually reach the Supreme Court.