A federal judge on Monday blocked President Donald Trump's policy requiring a $100,000 payment for certain H-1B visa applications, ruling it an unauthorized tax that Congress alone can impose.

U.S. District Judge Leo Sorokin in Massachusetts vacated the fee in a decision siding with Democratic-led states and other plaintiffs who challenged the measure. The court found that the September 2025 proclamation, which restricted the entry of certain nonimmigrant workers unless employers paid the fee, violated separation of powers principles.

The H-1B program allows U.S. employers to hire foreign workers in specialty occupations requiring specialized skills, such as technology, engineering, and healthcare roles. Trump issued the proclamation to limit new petitions for workers outside the United States, with the fee applying for 12 months starting in September 2025.

Plaintiffs argued the fee harmed their ability to recruit talent amid labor shortages in key sectors. The ruling provides immediate relief to employers facing the steep cost on top of existing application fees.

This decision comes after earlier court proceedings, including a December 2025 ruling in another district that had upheld aspects of the policy. The Massachusetts case focused on challenges from states and organizations representing nurses, universities, and other employers.

The Trump administration has defended the fee as a tool to prioritize American workers and curb abuse of the visa program. Critics, including business groups, contended it would raise costs dramatically and reduce competitiveness in global talent markets.

The order vacates the fee requirement entirely, though appeals remain possible. Employers and states welcomed the outcome as preserving access to skilled foreign labor without additional barriers.