Federal court blocks Trump’s $100,000 visa charge for foreign talent in major setback for immigration policy

The administration argued the fee was a legitimate monetary penalty that the president was authorized to impose under federal immigration law, which grants him the power to restrict the entry of certain foreign nationals when he determines it is “detrimental to the interests of the United States.”

However, Sorokin determined that the fee was not a penalty but a tax, which the Republican president did not have Congressional authorization to impose, and that the U.S. State Department and U.S. Citizenship and Immigration Services could not enforce.

“In this case, the essence and application of the $100,000 payment show that it is a tax, regardless of its name,” wrote Sorokin, appointed by Democratic President Barack Obama.

The judge referenced the U.S. Supreme Court’s February ruling that overturned Trump’s extensive tariffs, which he pursued under a law intended for national emergencies. According to the justices’ reasoning in that case, Trump also lacked the authority under immigration law to levy a tax, Sorokin stated.

White House spokeswoman Taylor Rogers stated that the Trump administration is confident that Sorokin’s ruling will be overturned on appeal.

“President Trump has clear legal authority to restrict the entry of any class of aliens he believes is not in America’s best interests, and that is exactly what he did,” she declared.

The H-1B program offers 65,000 visas annually, with an additional 20,000 visas for workers with advanced degrees, approved for three to six years. Before Trump’s proclamation, employers seeking a visa for a foreign worker typically paid about $2,000 to $5,000 in fees depending on various factors.

In imposing the substantial new fee, Trump stated in a proclamation that the H-1B program “has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor.”

The fee does not apply to visas granted to foreign citizens already in the United States on student visas, who generally make up a large portion of new H-1B recipients.

Few employers have paid Trump’s fee since its introduction. As of February 15, USCIS had received just 85 payments of the $100,000 fee, an agency official noted in a March filing.

The Trump administration has also mandated enhanced vetting of H-1B applicants and proposed a new visa selection process that would favor higher-skilled and better-paid workers.

The $100,000 fee led to at least three different lawsuits challenging its implementation, including a case by the U.S. Chamber of Commerce, which is appealing a December decision by a judge in Washington, D.C., who dismissed its claims that Trump had no authority to establish the fee.

California Attorney General Rob Bonta, a Democrat who led the multi-state coalition that filed the case before Sorokin, praised his ruling for overturning Trump’s “unlawful and costly $100,000 tax.”

“This tax was an attack on America’s ability to attract and retain the high-skilled talent that bolsters our economy and helps us meet critical workforce needs,” he stated.

Joshua Fenwick

Crime & Justice Correspondent