WASHINGTON — A federal judge in California has ruled that a Trump administration policy reducing wages for migrant agricultural workers was unlawful, creating a new legal challenge over U.S. farm labor and immigration policy.

U.S. District Judge Kirk E. Sherriff ruled Wednesday that the Labor Department's policy reducing pay for workers in the H-2A agricultural guest-worker program violated federal law. The policy had lowered hourly wage rates by several dollars in an effort to reduce labor costs for American farmers.

The administration had argued that cheaper foreign labor was necessary as farmers faced labor shortages linked to stricter immigration policies. The government estimated the changes could save agricultural employers billions of dollars over the coming decade.

The court did not immediately restore the previous wage rates. Instead, the Labor Department was ordered to quickly establish new rates consistent with the ruling and notify employers that they could face back-pay obligations.

The H-2A program is particularly important to U.S. agriculture, with the Labor Department certifying roughly 398,200 positions in fiscal year 2025. Major users include agricultural operations in California, Florida, Georgia, Washington and North Carolina.

The ruling could have wider consequences for U.S. farmers, agricultural labor costs and the future of the H-2A guest-worker system, while potentially creating another legal battle over the administration's immigration policies.