President Donald Trump's efforts regarding H-1B visas continue to face significant judicial hurdles.

A federal appeals court on Friday turned down an attempt to reinstate Trump's $100,000 charge on new H-1B work visas, adding another obstacle to the administration's goal of sharply increasing expenses for hiring skilled overseas talent.

The Boston-based 1st US Circuit Court of Appeals chose not to halt a lower court order that suspended the fee during the appeal process. A three-judge panel noted the government did not demonstrate a strong chance of success in claiming the president could unilaterally impose such a payment.

This outcome preserves a June decision from US District Judge Leo Sorokin, who concluded the fee functions as a tax and therefore requires authorization from Congress instead of the executive branch.

"Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called," Sorokin wrote.

Trump introduced the fee in September 2025 amid a wider immigration enforcement push, explaining then that the H-1B program "has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor."

Brian Hunt, an immigration policy compliance lawyer with Fragomen, Del Rey, Bernsen and Loewy, LLP, told Business Insider that the ruling's impact remains uncertain since most US employers sponsor H-1B workers already present in the country.

"In light of the 100k fee, there are some workers who were about to lose their job offer but can now get a visa after all," Hunt said.

The H-1B program grants roughly 65,000 visas annually, along with an extra 20,000 for those holding advanced degrees, and serves as a key tool for tech firms seeking global expertise. Prior to the new policy, employers typically covered fees ranging from about $2,000 to $5,000.

Official records indicate the sharp hike has cut demand substantially. By mid-February, US Citizenship and Immigration Services had processed very few of the elevated payments.

The challenge to the fee originated from 20 Democratic state attorneys general.

The White House did not immediately respond to a request for comment.