Key facts
- President Donald Trump implemented a $100,000 fee for H-1B work visas.
- A federal judge ruled the fee increase exceeded the administration's authority.
- The ruling was based on the Administrative Procedure Act, stating the policy imposes a tax without congressional delegation.
- The H-1B visa program allows U.S. companies to hire foreign workers with specialized skills.
- The fee was intended to protect American jobs from being taken by lower-paid foreign workers.
- The fee generated minimal revenue, with only 85 payments received by mid-February.
A federal judge in Boston has struck down President Donald Trump's $100,000 fee for H-1B work visas, ruling that the administration exceeded its authority by imposing the charge without congressional approval. The fee, implemented last year, was intended to protect American workers from job displacement by lower-paid foreign professionals.
The H-1B visa program, established by the 1990 Immigration Act, allows U.S. companies to hire foreign workers with specialized skills and at least a bachelor's degree. These visas are typically valid for three years and can be extended. Computer-related jobs account for a significant portion of H-1B approvals, but various other sectors, including healthcare and education, also utilize the program. The annual cap for new visas is 65,000, with an additional 20,000 for those with master's degrees or higher, distributed via a lottery system.
Critics argued that the H-1B program incentivizes companies to replace American workers with cheaper foreign labor, citing instances where IT divisions were closed and American staff were laid off. A 2020 report by the Economic Policy Institute indicated that a majority of H-1B positions offered wages below the median for their roles. Conversely, supporters contend that H-1B visa holders enhance company productivity and complement the domestic workforce.
The $100,000 fee, which took effect shortly after its announcement, saw very limited adoption, generating only $8.5 million in revenue from 85 payments by mid-February. This suggests the fee was largely unsuccessful in its revenue-generating aims and did not significantly deter H-1B visa applications, which remained at levels seen in the 2010s.
U.S. District Court Judge Leo Sorokin's ruling stated that the fee violated the Administrative Procedure Act, as it constituted a tax imposed without the necessary delegation from Congress. This decision contrasts with an earlier ruling by a different federal court that had upheld the fee. Further legal challenges are ongoing, potentially leading to conflicting appellate court decisions.