US Judge Says Trump’s $100,000 H-1B Visa Fee Is Unlawful
Synopsis
A federal judge has ruled that President Donald Trump's $100,000 H-1B visa fee is unlawful, saying it amounts to a tax that Congress never authorized. The decision came in a lawsuit brought by 20 Democratic state attorneys general challenging the policy. Judge Leo Sorokin concluded that the fee functioned as a tax rather than a penalty and could not be enforced by federal agencies. The White House plans to appeal the ruling. The case marks a major development for employers that rely on the H-1B visa program to hire highly skilled foreign workers.
A U.S. federal judge has knocked down President Donald Trump H-1B $100,000 visa fee, which was an illegal tax that Congress never said "yes" to.
The ruling was part of a lawsuit launched by 20 Democratic state attorneys general against a policy which dramatically increased the price of gaining new H-1B visas for highly-skilled foreign workers. The decision is an important win for firms that need the visa program to bring in foreign workers.
Why Was the H-1B Fee Repealed by The Judge?
U.S. District Judge Leo Sorokin ruled that the $100,000 fee was a tax and not a punishment. And he said Trump lacked congressional authority to impose a tax of this kind under federal immigration law.
The administration had contended that the charge is a legitimate financial sanction intended to prohibit particular foreign nationals from entering and it would adversely affect U.S. national interests. Sorokin emphasized that the nature and use of payment demonstrated it was in fact a tax. Consequently, major agencies of the U.S. government such as the State Dept and USCIS will not be able to put into effect a fee.
Why was the H-1B $100,000 Fee added?
The fee was announced in September as Trump argued that the H-1B visa programme had been hijacked by businesses to use cheap foreign labour in place of American workers instead of growing the domestic workforce.
Before the implementation of policy, employers paid fees between $2000-$5000 depending on various factors. The new measure affected applicants who had to pay an additional $100,000 in the process of applying under the program, added significantly more costs for companies that use it.
How H-1B Visa Program Works
H-1B is a non-immigrant visa that allows American companies to employ foreign workers for special occupation. It is a program that provides 65,000 visa annually and an additional 20,000 visa to people with very advanced degrees.
These have a validity of three to six years and are predominantly used by tech firms. The new fee of $100,000 did not apply to foreign nationals present in the United States already on student visas, a category that represents a large portion of H-1B recipients every year.
Next Steps in the Legal Battle
The White House has expressed confidence the ruling will be overturned after appeal. According to White House spokeswoman Taylor Rogers, the administration believes that the president has unambiguous legal power to limit the arrival of foreign nationals when it is in America's interests.
The fee itself has been the subject of several legal challenges, including one from the U.S. Chamber of Commerce. Through Feb. 15, USCIS had received only 85 payments of the $100,000 fee, as of a March court filing and said there is little evidence that the policy has been used much at all since its introduction.
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