Judge Rejects Trump’s $100,000 H-1B Visa Fee
A federal judge has dismissed President Donald Trump’s proposal to impose a $100,000 fee for employers applying for H-1B visas aimed at skilled foreign workers. The ruling, issued by U.S. District Judge Leo Sorokin, appointed by Obama, stated that the administration overstepped its authority in trying to enforce what essentially functions as a tax, a power reserved for Congress.
The lawsuit, initiated by 20 states and led by California, challenged the fees announced last September and named Homeland Security Secretary Markwayne Mullin as a defendant, among others from federal agencies involved with the H-1B visa program.
Judge Sorokin’s ruling invalidated various documents from the agency, such as memoranda, guidance documents, and the fee schedules associated with the $100,000 requirement.
Impact on Tech Giants
Sorokin noted that these fees were intended to boost revenue from legitimate programs, thus categorizing them as a tax rather than a mere penalty, as argued by the Trump administration. According to the U.S. Constitution, any form of taxation must be authorized by Congress.
The ruling highlighted that the fee was not about designating H-1B worker employment as illegal—after all, hiring through this program is completely lawful. The court clarified that this fee should not be viewed as a punishment for any wrongdoing.
Procedural Violations Noted
Moreover, the judge stated the fees violated the Administrative Procedures Act (APA) requiring public input before such policies are enacted. The government failed to properly justify the reasons behind imposing these fees, evaluate alternatives, or consider the potential impacts on the community.
“The mere fact that defendants complied with the President’s directives does not give them the freedom to ignore the APA’s demands,” Sorokin remarked.
Background on H-1B Visas
Since February 15, U.S. Citizenship and Immigration Services (USCIS) reported receiving 85 payments of the $100,000 fee, totaling $8.5 million. The H-1B program traditionally offers 65,000 visas annually, with an extra 20,000 allocated for individuals holding advanced degrees. Typically, the visa duration ranges from three to six years, and prior to Trump’s fee announcement, the fees varied from $960 to $7,595.
The Trump administration had argued that the H-1B visa process threatened American jobs and the economy, which drew significant backlash from many in the business and tech sectors. Noteworthy companies like Amazon, Microsoft, and Apple have been major beneficiaries of the H-1B program, with Amazon securing over 19,000 approvals in a recent timeframe, more than any other major tech firm.
