Overview
- Judge Leo Sorokin issued the ruling on Monday, June 8, 2026, finding that the $100,000 charge for new H‑1B approvals operates as an unauthorized tax rather than a presidential penalty.
- The lawsuit was brought by attorneys general from 20 Democratic‑led states who argued the fee exceeded executive authority and violated administrative law.
- The Trump administration had defended the charge as a financial penalty within immigration enforcement powers, but Sorokin said the payment’s design and application show it is a tax that requires Congressional approval.
- A prior Washington magistrate had upheld the fee, creating a split in lower‑court rulings, and court filings show only 85 employers had paid the new charge through mid‑February, indicating limited uptake.
- The decision raises questions about how the H‑1B program will be administered and whether the government will appeal or change policy, while employers and business groups who warned the fee would be prohibitive are likely to press for a permanent halt.