A federal court in Massachusetts has officially wiped out a Trump administration policy that required employers to pay a $100,000 tax on new H-1B visa petitions. The final judgment marks a victory for a multistate coalition of attorneys general, including Michigan’s Dana Nessel, who sued to block the fee late last year.
The H-1B visa program allows U.S. employers to temporarily hire high-skilled foreign workers in specialty fields that require at least a bachelor’s degree, such as healthcare, education, and technology. Under rules set by Congress, the annual cap for private employers stands at 65,000 visas, plus an extra 20,000 for applicants holding a master’s degree or higher. Government agencies and non-profit research organizations are exempt from these caps to help them fulfill public service goals.
The legal battle began after President Trump issued a proclamation on September 19, 2025, ordering the unprecedented $100,000 payment for new petitions. Implemented by the Department of Homeland Security, the policy took effect for applications filed after September 21, 2025.
It also gave the Secretary of Homeland Security broad discretion to decide which employers had to pay the fee and who got an exemption.
Supporters of the H-1B program note that its workers and their dependents contribute $86 billion to the U.S. economy each year, which includes $35 billion in federal and payroll taxes alongside $11 billion in state and local taxes. Opponents of the $100,000 fee argued the rule created an immediate barrier for hospitals, universities, and local governments already struggling to fill critical staffing shortages.
With the U.S. District Court of Massachusetts vacating the policy, the massive fee has been entirely discarded.
“Our hospitals, universities, and manufacturing industry rely on skilled workers to keep our communities healthy and moving forward,” Attorney General Nessel said following the ruling. “Unlawfully imposing a massive fee on recruiting this talent would have been detrimental to our economy, and I am relieved that the Court has stepped in to ensure Michigan employers can continue to attract the workers they need.”
READ: Wallet Strain vs. Paycheck Strength: The Balancing Act Driving U.S. Consumer Confidence
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