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Appeals Court Keeps Block on $100,000 H‑1B Fee

The decision preserves a federal judge’s finding that the levy functioned as a tax and leaves the rule blocked while the government appeals and Congress considers legislation.

Overview

  • A federal appeals panel refused to revive the Trump administration’s $100,000 charge, leaving U.S. District Judge Leo Sorokin’s injunction in place while the government pursues an appeal.
  • Judge Sorokin concluded in June that the $100,000 payment was, in substance, a tax that only Congress may impose, and he also found the administration exceeded its legal authority.
  • President Trump announced the levy in September 2025 as part of an immigration plan that he said addressed program abuse, and court filings show demand for new H‑1B petitions fell sharply after the announcement.
  • Republican lawmakers have proposed bills to suspend new H‑1B visas for three years and to authorize the fee by statute, a legislative path that could override the courts if passed by Congress.
  • The ruling provides immediate relief to skilled foreign workers and U.S. employers that rely on H‑1B hires while the case proceeds on appeal and the larger debate over wages and competitiveness continues.