VOI World/ Desk
A US federal court has struck down a controversial $100,000 fee imposed by President Donald Trump’s administration on certain H-1B visa applications, ruling that the charge amounted to an unlawful tax that had not been authorised by Congress. The decision is being viewed as a significant development for employers and foreign professionals who rely on the H-1B visa programme, including thousands of Indian workers in the United States.
US District Judge Leo Sorokin in Massachusetts ruled that the administration lacked the legal authority to impose the fee, which was announced as part of broader efforts to curb immigration and encourage companies to hire American workers. The judge said that despite being described as a penalty, the substance of the payment effectively made it a tax that required congressional approval.
The fee had dramatically increased the cost of sponsoring certain highly skilled foreign workers. Before the policy was introduced, employers typically paid between $2,000 and $5,000 in visa-related fees. The additional $100,000 charge significantly raised the financial burden on companies seeking to hire overseas talent through the H-1B programme.
The ruling came in response to a lawsuit filed by California and 19 other Democratic-led states, which argued that the administration had exceeded its authority. Judge Sorokin agreed with the challengers and ordered the fee to be vacated.
The Trump administration has defended the measure as a tool to discourage excessive reliance on foreign labour and strengthen opportunities for American workers. However, business groups and technology companies have argued that the fee would make it harder to recruit specialised talent in sectors facing skills shortages.
The H-1B programme remains one of the most important employment-based visa pathways in the United States, allowing companies to hire highly skilled foreign professionals in specialised occupations. Indian professionals account for a significant share of H-1B visa holders, making developments involving the programme closely watched by the Indian diaspora and global employers alike.
