06/10/2026
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ยฉ Farhad Sethna, Attorney, 2026
A federal judge in Massachusetts vacated Trumpโs declaration imposing a $100,000 fee for H1B applicants. The judge reasoned that the fee amounted to a tax, rather than a penalty. The president is not allowed to impose taxes, that is only Congress's purview. The court found, among other reasons, that the presidentโs unilaterally imposed $100,000 H1B fee was a tax, and consequently, the president had no authority to impose such a tax, nor did the agencies have the authority to demand payment and collection.
Note that โthe feeโ was simply that โ a whimsical fee imposed by Trump. It was not a penalty either โ because the US companies petitioning for their H1B workers had followed the law and processes in applying for the H1B classification for their intended employees. So there was nothing to penalize.
The lawsuit was brought by a coalition of 20 states, led by California, and was heard at the federal district court in Massachusetts.
The states complained that the executive order imposed an extremely undue burden on the states, especially with regard to highly skilled occupations such as the healthcare, computer science and engineering fields.
Further, the judge ruled that, under the Administrative Procedures Act, the agencies were not permitted to impose this fee absent a necessary notice and comment procedures that were required under the Act. Additionally, the court also held that the "foreign affairs" and the "good cause" exceptions did not apply because there were no urgent international or emergency circumstances.
Given this background, the court reined in the agencies' conduct on the grounds that the policy as announced by Trump lacked a reasoned explanation, ignoring any reliance interests and statutory scheme.
It now remains to be seen whether the Trump administration will appeal the federal court's decision to the Second Circuit.
Stay tuned for further developments!
ยฉ Farhad Sethna, Attorney, 2026
Farhad Sethna has practiced law for over 30 years. He was awarded his JD in 1990 and his MBA in 1991, both from the University of Akron. Since 1996, he has also been an adjunct professor of Immigration Law at the University of Akron, School of Law, in Akron, Ohio, where he wrote and continues to use his own immigration textbook. Attorney Sethna is a frequent speaker at Continuing Legal Education and professional development seminars on various immigration-related topics. His practice is limited to immigration and small business. He has won awards for excellence in teaching and for pro-bono service. With offices in Cuyahoga Falls, Ohio, Attorney Sethna represents clients in all types of immigration cases before federal agencies and the immigration courts nationwide. A private pilot, it is Farhadโs goal to fly to each of Ohioโs 88 county airports. Our number is: (330) 384-8000. Please send your general immigration questions to [email protected]. We will try to answer as many questions as possible.