In a significant setback for President Donald Trump's immigration policy, a US federal court has struck down the administration's imposition of a $100,000 fee on new H-1B visas, labeling it an unlawful tax. The ruling, delivered by US District Judge Leo Sorokin in Boston, came after a lawsuit from 20 Democratic state attorneys general challenged the fee, which was introduced in September. The H-1B visa program, essential for skilled foreign workers, particularly from India, had previously charged employers fees ranging from $2,000 to $5,000. The court's decision is expected to alleviate burdens on employers and foreign workers, as the exorbitant fee had already led to a 38.5% drop in applications for the fiscal year 2027. Judge Sorokin emphasized that the President lacks the authority to levy such a tax without Congressional approval. The ruling leaves the Trump administration to consider whether to appeal or modify the H-1B program further. This decision is particularly relevant for Indian professionals, who constitute a significant portion of H-1B visa holders in the US.