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Appeals court rejects Trump bid to halt H-1B visa fee ruling

Created at 24 Jul · 10:54 PM1 source↑ Market-relevant
IN SHORT

A federal appeals court has rejected a bid by the Trump administration to halt a judge's order that blocked a $100,000 fee on new H-1B visas for highly skilled foreign workers. The court found the government was unlikely to succeed in its challenge.

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Key Numbers

$100,000fee on new H-1B visas
June 8date of lower court ruling
July 24date of appeals court order
20states that sued over the policy
65,000annual cap on new H-1B visas
20,000additional visas for master's degree holders

Who's Involved

Donald Trump
U.S. President whose administration sought to impose the fee
1st U.S. Circuit Court of Appeals
federal appeals court that rejected the bid
Leo Sorokin
federal judge who initially voided the fee
Department of Justice
argued the fee was a justified use of presidential powers
Letitia James
New York Attorney General who led the lawsuit
Appeals court rejects Trump bid to halt H-1B visa fee ruling

↳ Why This Matters

The appeals court's decision upholds a lower court ruling that found the Trump administration exceeded its authority by imposing a significant fee on H-1B visas without congressional approval, impacting the ability of U.S. companies to hire specialized foreign talent.

Key facts

  • A federal appeals court rejected the Trump administration's request to halt a ruling that blocked a $100,000 fee on new H-1B visas.
  • The fee was intended to protect American workers and address national security concerns.
  • The lower court judge ruled the fee constituted an unlawful tax and exceeded the president's authority.
  • The H-1B visa program allows companies to hire foreign workers with specialized skills and a bachelor's degree.

A federal appeals court has rejected the Trump administration's attempt to pause a ruling that invalidated a $100,000 fee on new H-1B visas for highly skilled foreign workers. The 1st U.S. Circuit Court of Appeals in Boston stated that the government had not demonstrated it was likely to succeed in its challenge to the lower court's decision.

Earlier, a federal judge had ruled that the fee, imposed by the Trump administration, constituted an unlawful tax and exceeded the president's authority, violating the Constitution's separation of powers. The administration had argued that the fee was necessary to address national security concerns and protect American workers, and that it was a justified use of presidential powers related to foreign commerce and immigration.

The H-1B visa program, established by the 1990 Immigration Act, allows U.S. companies to hire foreign professionals with specialized skills, typically requiring a bachelor's degree or equivalent. The visas are generally valid for three years and can be renewed for an additional three years. A significant portion of these visas are allocated to computer-related jobs, though various sectors, including healthcare, finance, and education, utilize the program.

The lawsuit challenging the fee was brought by a coalition of Democratic state attorneys general. Separate challenges to the fee are still pending in other courts.

Frequently asked questions

The H-1B visa program allows U.S. companies to hire foreign workers with specialized skills and a bachelor's degree or equivalent. It is intended for temporary employment in professions that are hard to fill with U.S. workers.

The administration stated the fee was intended to protect American workers from being replaced by lower-paid foreigners and to address national security concerns related to the program.

The courts ruled that the fee constituted an unlawful tax and that the president lacked the authority to impose such a fee without congressional approval, violating the separation of powers.

The lawsuit was brought by a coalition of Democratic state attorneys general, led by New York.

What Happens Next

01Decisions on separate challenges to the fee are pending at the US District Court for the Northern District of California and the US Court of Appeals for the District of Columbia Circuit.

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Cadence

How It Developed

A federal judge ruled on June 8 that the $100,000 fee on new H-1B visas was unlawful.
The Trump administration sought to halt the judge's order, arguing it exceeded presidential authority.
A federal appeals court rejected the administration's bid to pause the order.
The court found the government was unlikely to succeed in its challenge to the ruling.
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Sources

T1
Appeals court rejects Trump bid to halt $100,000 H-1B visa fee rulingReuters
T2
Trump’s $100,000 H-1B visa fee is shot down by a federal judge | AP Newsapnews.com
T2
H-1B visas: Federal judge voids Trump’s $100,000 fee requirement | CNN Politicscnn.com
T2
First Circuit Denies Trump Bid to Pause Order Tossing H-1B Feenews.bgov.com

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