If you call a fee a tax, it doesn't make it a tax. But if it walks like a tax and quacks like a tax, a judge might just call it a tax anyway. That's what happened Monday when a federal judge struck down President Donald Trump's $100,000 fee on certain H-1B visa applications, ruling that the administration overstepped its authority.
U.S. District Judge Leo Sorokin in Boston said the payment was effectively a tax that Congress never authorized. "Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called," Sorokin wrote. The administration had argued the fee was a lawful penalty meant to discourage companies from relying too heavily on foreign workers. But the court wasn't buying it, noting that immigration law doesn't give the president unilateral power to create such a charge.
The White House pushed back. Spokeswoman Taylor Rogers said the administration remains confident the decision will be overturned. "President Trump has clear legal authority to restrict entry of any class of aliens he determines is not in America's best interests, and that is exactly what he did," Rogers said, per Reuters. The White House didn't immediately respond to MarketDash's request for comment.
The ruling is a big deal for big tech. Companies like Amazon.com, Inc. (AMZN), Meta Platforms, Inc. (META), Microsoft Corp (MSFT), and Alphabet Inc. (GOOG) (along with its Class A shares (GOOGL)) are among the largest users of the H-1B program. According to an analysis by the National Foundation for American Policy using USCIS data, Amazon led all companies with 4,644 approved new H-1B petitions for initial employment in fiscal 2025. Meta followed with 1,555 approvals, while Microsoft and Google recorded 1,394 and 1,050 approvals, respectively. The H-1B program allocates 65,000 visas annually, plus another 20,000 for workers with advanced degrees.
Trump introduced the $100,000 fee through a September proclamation, arguing that companies had exploited the program to replace American workers with lower-cost labor. But California Attorney General Rob Bonta, who led a coalition of Democratic attorneys general challenging the policy, praised the ruling. "This tax was an attack on America's ability to attract and retain the high-skilled talent that strengthens our economy and helps us meet critical workforce needs," Bonta said.
The administration is expected to appeal, so this isn't the final word. But for now, tech companies can breathe a little easier knowing they won't have to shell out an extra $100,000 per visa. The broader immigration fight, however, continues.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.
