The Trump administration has appealed to a federal court regarding a $100,000 payment linked to certain H‑1B visas, asserting it is a lawful immigration restriction rather than a tax. This follows a lower court’s decision blocking the policy.
In filings presented on June 18, the administration argued in the US Court of Appeals for the First Circuit that the charge falls within the president’s broad immigration powers. This was challenged after a district judge deemed the policy likely beyond presidential authority by effectively creating a tax without congressional consent.
President Donald Trump’s proclamation requires specific employers seeking new H‑1B visas to pay $100,000 for foreign worker entry. The administration stated this measure was introduced due to perceived misuse of the visa program. They also argued it dealt with national security concerns, warning that without the policy, more foreign workers could enter, potentially affecting U.S. interests.
Why It Matters
Critics of the H‑1B program claim it displaces U.S. workers or suppresses wages, while proponents argue it fills specialized roles in industries like healthcare and engineering. The administration cited such concerns to defend the proclamation, emphasizing alleged displacement and wage impacts in court documents.
What To Know
The H‑1B visa program permits U.S. employers to temporarily hire foreign workers in specialty roles. Federal law limits most new visas to 65,000 annually, with an additional 20,000 for workers holding advanced U.S. degrees.
The Departments of Homeland Security and State Department were instructed to deny H‑1B petitions not accompanied by the payment and verify the fee before issuing visas, according to the government’s filing.
A coalition of states contested the policy, claiming it exceeded presidential authority and effectively imposed a tax without congressional approval. On June 8, a Massachusetts federal district court agreed, ruling the payment functioned as a tax unauthorized by Congress, thereby vacating the fee.
“The President had no power or delegated authority to impose a tax on H-1B petitions,” US District Judge Leo Sorokin wrote in his decision. The administration has appealed and seeks to stay this ruling.
In its appeal, the government claimed the district court erroneously classified the payment as a tax, asserting instead that it mirrors other immigration fees and restrictions.
“Every day that passes more aliens can petition and enter the country despite the President’s determination that their entry would be detrimental,” the administration’s lawyers stated in their court filing. “And even if Defendants ultimately prevail on appeal, it will be difficult to revoke those visas and remove aliens who did not pay.”
Justice Department lawyers referenced the Immigration and Nationality Act provisions enabling the president to “impose on the entry of aliens any restrictions he may deem to be appropriate.” They argued that this authority includes mandating a one-time payment.
The payment is not intended to raise revenue, but to regulate immigration by discouraging reliance on foreign labor and promoting U.S. worker hiring.
The court asserted the payment was tax-related, violating the Administrative Procedure Act by exceeding statutory authority and bypassing necessary rulemaking procedures.
What Happens Next
The case, now before the First Circuit, will focus on whether the payment represents a legitimate immigration restriction or an unauthorized tax imposed without congressional approval. This issue could define the scope of presidential authority over employment-based visa programs.