A US federal court has struck down President Donald Trump’s proposed USD 100,000 fee on employers seeking to hire foreign workers under the H-1B visa programme, a decision that has been welcomed by business and immigration advocacy groups as a significant victory for skilled immigration and workforce mobility.

The ruling, delivered by a federal judge in Massachusetts, blocks a controversial measure introduced through a presidential proclamation in September 2025 that sought to dramatically increase the cost of hiring highly skilled foreign professionals.

Industry stakeholders argue that the decision restores certainty for employers and reinforces the importance of maintaining access to global talent in key sectors of the American economy.

Court Rejects Fee Proposal

US District Judge Richard Stearns ruled that the proposed fee violated constitutional principles governing the separation of powers, concluding that the executive branch lacked the authority to impose such a significant charge without explicit congressional approval.

The fee had been introduced through a presidential proclamation and subsequently implemented by the US State Department and the Department of Homeland Security.

The ruling marks a notable legal setback for the Trump administration, which had argued that the measure was necessary to address alleged abuses of the H-1B programme and encourage employers to prioritise hiring American workers.

Trump had maintained that misuse of the visa programme discouraged Americans from pursuing careers in science, technology and engineering fields, potentially undermining US leadership in critical sectors.

However, Judge Stearns’ decision found that such a sweeping policy change required a stronger statutory basis and could not be enacted solely through executive action.

Industry Groups Welcome Decision

Reacting to the judgment, Khanderao Kand, Chief of Policy and Strategy at the Foundation for India and Indian Diaspora Studies (FIIDS), described the ruling as an important step towards preserving fairness and predictability in the employment-based immigration system.

Speaking to ANI, Kand said the decision supports America’s competitiveness in innovation, research and entrepreneurship by ensuring continued access to highly skilled global talent.

“We welcome the Massachusetts federal court’s decision striking down the USD 100,000 H-1B visa fee, which restores predictability and fairness to the employment-based immigration system,” he said.

Kand argued that sectors such as technology, healthcare and advanced manufacturing depend heavily on specialised international talent and that a balanced, merit-based immigration framework ultimately benefits both businesses and the broader economy.

He also said the ruling reinforces the principle that major immigration policy changes should be grounded in both legal authority and economic realities.

H-1B Programme Remains At Centre Of Debate

The H-1B visa programme allows US employers to hire foreign professionals in speciality occupations that typically require at least a bachelor’s degree or equivalent expertise.

Employers seeking to sponsor H-1B workers must certify that hiring foreign professionals will not adversely affect the wages or working conditions of similarly employed American workers.

The Massachusetts ruling comes amid ongoing legal and political debates over the future of skilled immigration in the United States.

Notably, a federal judge in Washington, DC, had earlier ruled in favour of the Trump administration in a separate challenge brought by the US Chamber of Commerce, concluding that Congress had granted the president sufficient authority to impose the fee.

However, that decision was issued before a significant US Supreme Court ruling on tariffs in February, a judgment that legal experts say influenced Judge Stearns’ interpretation of executive authority.

The latest ruling is expected to have important implications for employers, immigration policy advocates and thousands of prospective H-1B applicants, particularly from countries such as India, which remains one of the largest sources of skilled professionals working in the United States.

While the administration may seek further legal remedies, the judgment for now removes a major financial barrier that could have significantly altered the economics of hiring foreign talent under the H-1B programme.

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