A federal judge on Monday struck down President Donald Trump’s policy imposing a $100,000 fee on employers filing H-1B visa applications.
US District Judge Leo Sorokin in Massachusetts ruled that the visa payment policy violated the federal Administrative Procedure Act and the Constitution.
The judge agreed with the plaintiffs that the substance and application of the $100,000 payment showed that it was effectively a tax.
He also held that Congress had not delegated such taxing power to the executive branch.
The H-1B visa programme was created in 1990 and is widely used by major US technology companies to hire highly skilled foreign workers.
The programme allows US employers to seek government approval to hire non-immigrant workers in specialty occupations for up to six years.
Trump introduced the $100,000 fee through a presidential proclamation last September, saying it was aimed at restricting misuse of the H-1B programme.
He had argued that abuse of the visa system had undermined American economic and national security through the large-scale replacement of American workers.
Before the policy change, H-1B visa application fees generally ranged between $2,000 and $5,000 per application, according to CNBC.
The White House did not immediately respond to CNBC’s request for comment on the ruling.
The lawsuit was filed in December by 20 states against the Trump administration and several senior officials.
