On June 8, U.S. District Judge Leo Sorokin of the Massachusetts federal court invalidated the $100,000 fee imposed by the Trump administration in a lawsuit filed by attorneys general from 20 Democratic-led states, including California.
Judge Sorokin determined that the fee is not a fine that the administration can impose but rather a tax that requires congressional approval. He stated in his ruling, "The nature and application of the $100,000 payment reveal that, regardless of its name, it is a tax."
The H-1B visa is issued to foreign workers in specialized fields such as science, technology, engineering, and mathematics (STEM). The annual cap is set at 65,000 for general applicants and an additional 20,000 for those with master's degrees or higher, totaling 85,000. The initial stay is for three years, with options for extension and permanent residency.
President Trump announced in September of the previous year that a $100,000 fee would be imposed on new H-1B visa applications. Previously, employers typically paid fees ranging from $2,000 to $5,000, but the new measure significantly increased costs, leading to widespread backlash from the tech industry.
The Trump administration has argued that companies have been using H-1B visas to bring in low-wage foreign workers, thereby displacing American jobs. In contrast, businesses contend that the H-1B visa is essential for filling labor shortages in specific sectors.
Following the fee increase, applications for H-1B visas have reportedly declined sharply. According to data submitted to the court during the lawsuit, as of February 15, only 85 applications had been received by the U.S. Citizenship and Immigration Services (USCIS) with the $100,000 fee.
The White House has indicated plans to appeal the ruling. White House spokesperson Taylor Rogers stated in a statement that President Trump has the legal authority to restrict foreign entry that does not align with U.S. interests and expressed confidence that the decision would be overturned on appeal.
South Korean companies operating in the U.S. have also utilized H-1B visas to hire skilled workers. According to USCIS data, as of the current fiscal year, Samsung Electronics and Samsung Semiconductor have received 24 new approvals, SK Hynix and SK On have received 16, LG Electronics and LG Energy Solution have received 10, and Hyundai Motor Group affiliates have received 9.
If the visa fee is ultimately ruled illegal, it is expected to reduce the financial burden on South Korean companies in the U.S. However, it remains unclear how many of these cases were subject to the $100,000 fee.
* This article has been translated by AI.
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