A federal judge has overturned the Trump administration’s decision to impose a $100,000 fee on new H-1B visas, reversing an earlier court ruling that upheld the fee increase. This decision challenges the administration’s approach to limiting foreign job competition.

President Donald Trump had justified the significant fee hike as a method to safeguard American jobs by discouraging foreign workers. However, U.S. District Court Judge Leo Sorokin in Boston ruled in favor of 20 states challenging the policy. The judge concluded that the executive branch exceeded its authority and violated the Administrative Procedure Act, which sets the rules for how federal agencies create and enforce regulations.

The Court finds that the Policy imposes a tax on H-1B petitions without the requisite delegation by Congress.

H-1B visas target high-skilled positions that are often hard to fill with American workers. Technology companies, in particular, heavily utilize these visas, with about 75% of approvals going to Indian workers. States argued that hiring essential professionals like doctors and teachers through the H-1B program was already tough before the fee increase.

This ruling marks a significant setback to the Trump administration’s immigration policy, which often emphasized reducing foreign worker participation in the U.S. job market.