Second Federal Judge Blocks Trump Administration's $100,000 H-1B Visa Fee Over Rulemaking Violations

A federal judge in California has become the second to halt the Trump administration's unprecedented $100,000 fee on new H-1B visas, ruling that federal agencies bypassed required notice-and-comment procedures under the Administrative Procedure Act. U.S. District Judge Haywood Gilliam Jr. in Oakland issued the 35-page decision on Sept. 30, 2026, blocking implementation of the fee stemming from a September 2025 presidential proclamation and its recent extension through September 2027.

The ruling responds to a lawsuit by a coalition including unions, employers, nonprofits like Global Nurse Force, and groups such as the American Association of University Professors. Plaintiffs argued the fee lacked congressional authority and would disrupt staffing at hospitals, universities, and other institutions reliant on the program, which issues 85,000 visas annually for high-skilled roles.

This follows a June 2026 ruling by Judge Leo Sorokin in Boston, who struck down the fee as an unlawful tax exceeding presidential authority; that decision was upheld on appeal in July. A separate D.C. case by the U.S. Chamber of Commerce initially upheld the fee but is under appeal. The administration maintains the fee deters program misuse and protects American wages, with DHS proposing a permanent ~$103,000 fee via formal rulemaking.

The H-1B program heavily benefits Indian nationals, who comprised 71% of approvals in FY2024. Legal experts note the blocks preserve access for employers while the administration pursues alternatives, potentially affecting tech hiring, healthcare staffing, and innovation costs passed to consumers.