A federal judge in Boston has blocked the Trump administration’s attempt to implement a $100,000 fee for H-1B visas. The judge ruled this fee as an unauthorized tax, lacking approval from Congress. Previously, the fee ranged between $2,000 and $5,000, and was intended to prioritize U.S. citizens.
On Monday, the Trump administration proposed making the fee permanent, with an amount of $103,265 for each cap-subject H-1B petition. This proposal would replace the initial charge introduced by a presidential proclamation, subsequently blocked by the court. The fee is aimed at covering the costs associated with the federal government’s management of the legal immigration system. Agencies involved include the Department of Homeland Security (DHS), Department of Justice, Department of State, and Department of Labor.
The H-1B worker visas are essential in the tech, education, and research sectors. The U.S. offers 65,000 regular cap visas annually, plus an additional 20,000 for workers holding a master’s degree or higher from U.S. institutions. Fees, prior to the Trump administration’s increase, ranged from $2,000 to $5,000.
The proposed H-1B fee is intended to recover costs incurred by federal government agencies overseeing lawful immigration programs.
The federal judge’s order stopping the fee collection is under review by an appeals court. Meanwhile, another court looks into whether a challenge to the fee by a major business group was appropriately dismissed. The temporary fee increase expires next month, a year after its introduction.
This week, DHS published its proposed rule, intending to make the fee permanent and posted it for public inspection. It outlines that the charge would not apply to cap-exempt H-1B petitions, but it would include petitions filed by some foreign students already in the U.S. looking to change to H-1B status.
Former President Trump stated that the H-1B program was misused by companies replacing American workers with less costly foreign labor. Conversely, business groups argue that the program helps address the shortage of qualified American workers and is important for U.S. firms needing skilled labor to support the economy.
Approximately 70 employers paid the $100,000 fee for 85 visa applications by late February. Complaints from various groups, including Democratic-led states, labor unions, and employers, challenge the fee. These complaints might evolve if the rule is finalized.
The Trump administration also introduced additional fees for extending H-1B workers’ stays and transferring employees from other countries to the U.S., further impacting employers utilizing this visa program.