A U.S. federal appeals court has rejected the Trump administration’s request to temporarily revive its controversial $100,000 fee on new H-1B visas, leaving in place a lower court ruling that blocked the measure. The decision by the 1st U.S. Circuit Court of Appeals in Boston is a significant setback for the administration’s immigration agenda and provides immediate relief to employers that rely on highly skilled foreign workers, particularly in the technology, engineering, healthcare, and research sectors.
The appeals court declined to stay a June ruling that found the fee likely constituted an unauthorized tax rather than a permissible administrative fee, meaning the administration cannot enforce the $100,000 charge while its appeal proceeds. The proposed fee, announced in September 2025, would have represented a dramatic increase from the typical $2,000 to $5,000 employers previously paid for H-1B visa applications.
Appeals Court Keeps Lower Court Ruling in Place
The 1st U.S. Circuit Court of Appeals ruled that the Trump administration failed to demonstrate it was likely to succeed on the merits of its appeal, one of the key requirements for obtaining an emergency stay.
As a result:
- The lower court’s injunction remains in effect.
- The $100,000 H-1B fee cannot be collected while litigation continues.
- Employers may continue filing H-1B petitions under the existing fee structure.
Case Snapshot
| Item | Details |
|---|---|
| Court | 1st U.S. Circuit Court of Appeals |
| Issue | Trump administration’s $100,000 H-1B visa fee |
| Court Decision | Request to revive fee rejected |
| Current Status | Lower court injunction remains in force |
| Impact | Employers continue paying existing H-1B filing fees |
Why the Fee Was Challenged
The Trump administration introduced the one-time $100,000 fee for first-time H-1B visa applications involving workers outside the United States, arguing the measure would discourage employers from replacing American workers with lower-paid foreign professionals and help address alleged abuse of the visa program.
However, opponents argued that:
- The fee was far higher than any reasonable administrative cost.
- It effectively functioned as a tax.
- Only Congress—not the President—has the constitutional authority to impose such a tax.
Court Questions Presidential Authority
A federal district court previously concluded that the administration had likely exceeded its legal authority because the fee was not tied to the government’s cost of processing H-1B applications.
The appeals court declined to suspend that ruling while the administration pursues its appeal, meaning the lower court’s reasoning remains effective for now.
Fee Comparison
| Category | Previous System | Proposed Rule |
|---|---|---|
| Typical H-1B filing-related fees | Approximately $2,000–$5,000 | $100,000 (for covered new applicants) |
| Status | Continues to apply | Blocked by court |
Relief for Employers and Skilled Workers
The ruling provides immediate certainty for companies that depend on international talent.
Industries expected to benefit include:
- Information technology.
- Artificial intelligence.
- Semiconductor manufacturing.
- Healthcare.
- Engineering.
- Scientific research.
Because the fee remains blocked, employers can continue sponsoring eligible foreign professionals without facing the proposed six-figure additional cost.
Broader Implications
The decision represents another legal challenge to the administration’s use of executive authority to reshape immigration policy.
While the appeal will continue, the ruling means:
- The administration cannot enforce the fee in the interim.
- Employers retain access to the existing H-1B program rules.
- Future changes to visa fees may require clearer congressional authorization if they are viewed as taxes rather than administrative charges.
Looking Ahead
The appeals court’s decision keeps the Trump administration’s proposed $100,000 H-1B visa fee on hold while the underlying legal challenge moves forward. The ruling offers temporary relief to U.S. employers that rely on skilled international workers and reinforces the lower court’s preliminary finding that the administration may have exceeded its authority by imposing what appears to be a tax without congressional approval.
Looking ahead, the litigation will determine whether the administration has the legal authority to impose such a substantial fee through executive action. A final ruling could shape not only the future of the H-1B program but also the scope of presidential power to alter immigration-related fees without explicit approval from Congress.
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
