Federal Judge Tosses Out $100K H-1B Fee

Research universities have worried that the fee could hamper their ability to recruit foreign workers and fill critical roles, including in medical centers.

Photo illustration by Justin Morrison/Inside Higher Ed | Evgenia Parajanian/iStock/Getty Images

A federal judge vacated the Trump administration’s $100,000 fee for H-1B visa applications, agreeing with the Democratic-led states that sued that the fee exceeded the administration’s authority.

H-1B visas permit employers to hire employees from outside the U.S. for specialized roles, particularly in tech. In 2025, more than 16,700 college and university employees were approved to work on H-1B visas, though that number was concentrated at 100 major research institutions, according to an analysis of federal data. Stanford University alone had more than 500 visas approved last fiscal year.

In September, Trump established the $100,000 application fee, which is typically paid by the employer, framing it as a measure to encourage companies to hire Americans. But colleges and other businesses worried that the fee would hurt their ability to recruit foreign workers.

The ruling stems from a December lawsuit filed by a group of 20 Democratic-led states that argued that the administration could not impose the fee without approval from Congress, which has the authority to set immigration fees and taxes.

In a statement published by The Hill, Department of Homeland Security officials said they disagreed “with this blatant judicial activism dismantling President Trump’s historic efforts for immigration reform.”

“Under President Trump and Secretary Mullin, our immigration system is being reformed to serve American citizens, American workers, and American families and to preserve our national identity—not to rapidly import foreigners who take American jobs, commit crimes, burden our welfare system, and erode our cultural and social fabric,” the statement continued.

But the plaintiffs celebrated the ruling.

“We just stopped Donald Trump’s crude attempt to hawk the American Dream to the highest bidder. Trump’s outrageous fees were a steep burden for Connecticut employers across the public and private sector who rely on skilled H-1B workers for difficult, vital positions. We sued, we won, and we’re going to keep fighting to protect a fair and lawful immigration process,” Connecticut attorney general William Tong said in a press release.

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