Washington wins challenge to administration’s unlawful $100K tax for H-1B visa

A final ruling Monday from the U.S. District Court of Massachusetts vacated the Trump administration's unlawful imposition of a $100,000 tax on new H-1B visa petitions following a multistate lawsuit that included Washington Attorney General Nick Brown.

"This win helps keep our state at the forefront of highly specialized research that drives our world's most dynamic industries," said Brown. "Unchecked, this illegal tax would have massively increased costs for Washington state agencies, public universities, and public colleges."

The H-1B visa program allows employers to petition for high-skilled foreign workers to temporarily fill positions in specialty occupations, including physicians, researchers, nurses, and other vital workers, in order to alleviate nationwide labor shortages. AG Brown joined a multistate coalition in challenging the policy in December 2025, alleging that the tax created a costly barrier for employers, weakened the economy, and disrupted essential services.

The Trump administration levied the $100,000 tax on H-1B visa applications without congressional authorization, which the court ruled was illegal.

Nearly 500 H-1B visa holders are employed across more than 30 of Washington's state agencies, public universities, and public colleges. Previously, employers paid between $960 to $7,595 in regulatory and statutory fees for H-1B visas. Since September, employers have been on the hook for the onerous $100,000 fee for any new H-1B visa petition. Most Washington state colleges and universities chose not to file new H-1B visa petitions to fill critical positions because they simply could not afford the new tax. If the illegal tax had continued, they might not have been able to meet requirements for some areas and programs, threatening these institutions' competitive edge, particularly in the areas of artificial intelligence, cybersecurity, and medical fields.

Congress has continually tailored the H-1B visa program to meet employers' labor needs while protecting American workers from being wrongfully displaced. Congress has repeatedly enhanced enforcement and increased penalties to prevent misuse of the program.

H-1B workers and their dependents contribute $86 billion annually to the U.S. economy and pay $35 billion in federal and payroll taxes, on top of $11 billion in state and local taxes.

Read the decision.