A federal judge appointed by former President Barack Obama overturned a proclamation by the Trump administration Monday that required a $100,000 fee for employers seeking new H-1B visa applications.

The judge, Obama-appointee Leo Sorokin, argued in the decision that the six-figure fee set by President Donald Trump for employers seeking to temporarily hire foreign nationals is an unauthorized tax, according to court documents. Sorokin presides over the U.S. District Court for Massachusetts.

Trump signed the proclamation in September 2025, and 20 states sued the administration — including California, Massachusetts, Oregon, New York and New Jersey, The Los Angeles Times reported.

The collective argument of the plaintiffs was that the fee hike was effectively a tax levied by the administration.

Sorokin ultimately concurred that “the substance and application of the $100,000 payment reveal that it is a tax,” according to court documents. (RELATED: The Hidden ‘Tax’ That’s Bleeding Your Wallet Dry)

Judge Sorokin asserted that the administration failed to show “that Congress delegated its taxing power to the President” through the Immigration and Nationality Act (INA). The judge ruled that the H-1B visa fee “imposes a tax on H-1B petitions without the requisite delegation by Congress.”

Sorokin blocked the proclamation and deemed it a violation of the Administrative Procedure Act (APA).

The proclamation aimed to combat the “large-scale replacement of American workers,” protect national security and improve the U.S. job market for Americans, according to the White House. (RELATED: Betrayed American Workers Expose Dark Underbelly Of H-1B Visa Scheme)

WASHINGTON, DC – SEPTEMBER 19: President Donald Trump, accompanied by U.S. Commerce Secretary Howard Lutnick (L), speaks after signing an executive order in the Oval Office at the White House on September 19, 2025 in Washington, DC. Trump signed two executive orders, establishing the “Trump Gold Card” and introducing a $100,000 fee for H-1B visas. The “Trump Gold Card” is a visa program that allows foreign nationals permanent residency and a pathway to U.S. citizenship for a $1 million investment in the United States. (Photo by Andrew Harnik/Getty Images)

Prior to the proclamation, the fees for H-1B visas ranged anywhere from $2,000 to $5,000 for each application, the Immigration Law Group previously told CNBC. The fees varied based on the corporation’s size.

JUST IN: A federal judge has ruled Trump’s $100,000 H-1B visa fee is an unauthorized tax on businesses and must be vacated. https://t.co/bQXFTaiMmK pic.twitter.com/g5HTy9Cu0X

— Kyle Cheney (@kyledcheney) June 8, 2026

Big tech companies were the top beneficiaries of H-1B visas in fiscal year 2025, with companies like Amazon, Meta Platforms and Microsoft leading the list for “approved new H-1B petitions,” Forbes reported. (RELATED: ROB MANESS: Americans Pay Price When Meta Lets Foreign Criminal Networks Run Wild)

Anthropic, OpenAI, and Nvidia ramp up H-1B visa applications, underscoring the fierce competition for skilled foreign workers. https://t.co/lppv7Nx8KG

— Business Insider (@BusinessInsider) June 8, 2026

Trump signaled a change of tune on H-1B visas in November 2025, telling reporters that the U.S. needs more migrant workers as American laborers are less skilled when it comes to producing microchips.

Judge Sorokin was appointed by Obama in 2013 and is a graduate of Yale College and Columbia Law School, according to the United States District Court for the District of Massachusetts.