A federal judge has blocked President Donald Trump’s bid to slap a $100,000 fee on employers who seek to hire foreign workers for specialized roles, labeling the policy an unauthorized “tax” that required congressional approval.

U.S. District Judge Leo Sorokin concluded that the president’s proposed payments for so-called H-1B visa applications, part of a September 2025 proclamation quickly implemented by the State Department and Department of Homeland Security, violated the separation of powers.

The ruling is a significant victory for states who sued Trump over the proclamation, saying the $100,000 fee had damaged their ability to hire workers at publicly run institutions like colleges and hospitals.

The Obama appointee’s ruling was rooted in two Supreme Court precedents: the ruling that upheld Obamacare by labeling its most controversial provision — a mandate for people to obtain health insurance — a “tax;” and the justices’ recent rejection of Trump’s unilateral effort to impose global tariffs, concluding the president can only exercise taxing authority when given unambiguous approval by Congress.

It’s the latest setback for Trump’s economic agenda, which has run into roadblocks in the courts and under the strain of the war with Iran. The White House and Justice Department did not immediately respond to requests for comment.

The H-1B visa program was established in its current form in 1990 and was aimed at permitting companies and organizations to hire foreign workers for specialized, high-skill roles. H-1B workers are capped nationally at 85,000 per year, with 20,000 slots reserved for workers with advanced degrees. The cap, however, does not apply to institutions of higher education and nonprofit research organizations.

Trump and his allies have argued that the program has been exploited to bypass or lay off American workers in favor of hiring foreign employees for lower wages.

“Abuses of the H-1B program present a national security threat by discouraging Americans from pursuing careers in science and technology, risking American leadership in these fields,” Trump contended in his proclamation.

Sorokin’s ruling came six months after a federal judge in Washington, D.C. sided with the Trump administration in a similar lawsuit brought by the U.S. Chamber of Commerce, concluding that Congress had granted the president the authority to levy the $100,000 fee. But U.S. District Judge Howell’s ruling came before the Supreme Court’s tariff ruling in February that helped inform Sorokin’s decision.

“The H-1B program has been abused for decades, and President Trump finally took action to fix it,” White house spokesperson Taylor Rogers said. “A federal judge in Washington already upheld a nearly identical order, and the Administration is confident this order will be reversed on appeal.”.(POLITICO)

• President Donald Trump speaks at Custer Farms in Chippewa Falls, Wisconsin, on June 5, 2026. Photo credit: | Mark Schiefelbein/AP