The policy, which dramatically increased visa costs, violated both the federal Administrative Procedure Act and the US Constitution, Judge Leo Sorokin of the US District Court in Boston ruled, according to CNBC.

The Trump administration has indicated that it plans to appeal the decision.

The ruling came in response to a lawsuit filed by 20 Democratic state attorneys general, who challenged the fee after it was announced in September.

New York Attorney General Letitia James, whose state was among those involved in the lawsuit, welcomed the court's decision.

"Every day, thousands of people with H-1B visas serve New Yorkers as doctors, teachers, and other skilled workers," James said, according to CNBC.

"Today, a court put an end to this administration's illegal attempt to destroy this critical program and the many jobs it makes possible," she added.

According to the US Government Accountability Office, Congress created the H-1B visa programme in 1990 to allow American employers to hire temporary foreign workers in specialised occupations. The law initially capped H-1B visas at 65,000 per fiscal year, although that limit has changed over time through legislative amendments.

The Trump administration implemented the $100,000 fee through a presidential proclamation last year. Before the change, H-1B visa fees generally ranged between $2,000 and $5,000 per application, CNBC previously reported.

Following the announcement of the steep fee increase, several companies said they would suspend participation in the programme due to the significantly higher costs.

Responding to Monday's ruling, White House spokeswoman Taylor Rogers defended the administration's position.

"President Trump has clear legal authority to restrict entry of any class of aliens he determines is not in America's best interests, and that is exactly what he did," Rogers said in a statement to CNBC.

"The H-1B programme has been abused for decades, and President Trump finally took action to fix it. A federal judge in Washington already upheld a nearly identical order, and the administration is confident this order will be reversed on appeal," she added.