Federal judge vacates Trump administration’s $100K H-1B visa fee

A federal judge vacated the Trump administration’s H-1B $100,000 visa fee requirement this week, ruling that the executive branch lacked the authority to impose the policy because it is a tax.

In a September 2025 proclamation, President Trump directed that new H-1B visa petitions submitted by employers be accompanied by a $100,000 payment. Before this proclamation, H-1B visa fees were typically under $5,000.

Attorneys general from 20 states sued the Trump administration over the policy in December, arguing that it violated the Administrative Procedure Act. They also claimed the policy would drastically increase hiring costs for public universities, research institutions, hospitals, and other employers that rely on skilled foreign workers. 

The American Hospital Association (AHA) was among several industry stakeholders that raised concerns over the policy, noting that the fee would hamper recruitment efforts, strain hospital staffing, and reduce patient access to essential services. The AHA explained that while healthcare professionals make up less than 5% of the H-1B visa holders in the U.S., they often fill critical workforce gaps in underserved and rural areas.  

The AHA surveyed its members in November and determined the increased fee would limit the ability of healthcare organizations to use the H-1B program to supplement their domestic workforce and address staffing shortages. Over 70% of respondents expected the policy change would negatively impact patient care, and 64% of hospitals that use (or planned to use) the program said they would pause, defer, or limit recruitment due to the fee increase.

H-1B visas allow employers to temporarily hire foreign national workers in occupations that require highly specialized knowledge and at least a bachelor’s degree. According to the American Medical Association, physicians who meet certain education, licensing, and examination requirements may qualify for H-1B visas, making the program a key pathway for foreign or internationally trained doctors to practice in the U.S.

The court ruling is a relief for healthcare organizations that employ H-1B-sponsored physicians. However, the Trump administration appealed the decision, so employers should continue to monitor for new developments.