WASHINGTON: A United States federal judge has blocked a controversial Trump administration rule that would have required a $100,000 fee for each new H-1B visa application, it emerged on Tuesday.

US President Donald Trump had ordered the annual fee be added to H-1B skilled worker visas in September 2025.

H-1B visas allow companies to sponsor foreign workers with specialised skills — such as scientists, engineers, and computer programmers — to work in the US, initially for three years, but extendable to six years.

Judge Leo Sorokin ruled that the charge was effectively a tax, and therefore illegal because only the US Congress has the authority to create new taxes.

The decision came after 20 state attorneys general, all Democrats, filed a legal challenge. They argued that the fee would make it harder for public universities, schools, and hospitals to hire qualified international staff.

The Trump administration had defended the policy, saying the president had the power to impose the fee as part of immigration enforcement and efforts to limit certain categories of foreign entry into the US. The court rejected that argument.

Judge Sorokin said the government could not re-label a tax as a “fee” or “penalty” to bypass congressional approval.

The H-1B visa system allows up to 65,000 new visas per year, plus an additional 20,000 for people with advanced degrees. Normally, employers pay a few thousand dollars in administrative and processing costs for each H-1B application. The $100,000 charge was far higher than standard practice and widely seen as a major barrier.

Court records showed that only a small number of employers — about 85 — had paid the fee before it was challenged in court and effectively halted.