A federal judge has overturned a policy from the Trump administration that set a $100,000 fee on new H-1B visa applications.
In a decision made on Monday, U.S. District Judge Leo Sorokin asserted that this extensive fee surpassed the executive’s authority and infringed on the constitutional separation of powers. Although President Donald Trump enacted the charge via a presidential proclamation, Sorokin labeled it an “unlawful tax” that the executive branch was not authorized to levy.
The judge aligned with a group of 20 states led by Democrats, stating that the Trump administration had overstepped its bounds, and only Congress has the authority to implement such decisions.
“The Court finds that the Policy imposes a tax on H-1B petitions without the requisite delegation by Congress,” Sorokin mentioned in his 42-page ruling. “Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called.”
The administration had framed the substantial fee — which boosted petition costs from a few thousand dollars to six figures — as a way to deter U.S. companies from outsourcing jobs and instead promote hiring American workers.
However, court documents indicated that, due to the exorbitant cost, as of February, the administration had only received 85 payments.
