The US Court of Appeals for the First District on Friday denied the Trump administration’s appeal of a US District Court ruling that blocked the president’s proclamation of a new $100,000 fee for H-1B visas. The three-judge panel found that the administration was unlikely to succeed on appeal.
H-1B visas are employer-sponsored non-immigrant visas issued to foreign workers with specialized knowledge and a bachelor’s degree or higher. Technology companies are the biggest users of H-1B visas, which are valid for three years with a possible three-year extension. Congress caps the program at 65,000 visas per year, with an additional 20,000 allowed for workers with advanced degrees. Before the proclamation, employers typically paid about $2000 to $5000 to obtain the visas.
Twenty states, led by California, sued the administration to block the fee created by President Donald Trump’s administration. In his proclamation, Trump said that employers have abused the program, hiring foreign workers for less money while cutting wages and jobs for Americans.
Judge Leo Sorkin, US District Court for the District of Massachusetts, held in favor of the states. He ruled that the new fee is a tax. The separation of powers in the US Constitution gives only Congress the authority to levy taxes and to determine immigration policy. The fee also violated the Administrative Procedure Act.
The US Chamber of Commerce has also sued to block the $100,000 fee, calling it unfair to start-ups and small to midsize businesses that often need expert workers from overseas to grow. The US District Court for the District of Columbia upheld the fee in December 2025. The Chamber of Commerce appealed, and the case is still pending.