President Donald Trump’s administration significantly increased the fee for H-1B work visas to $100,000 last year, claiming the measure would protect American jobs from lower-paid foreign workers. However, a federal judge has ruled against this decision.
About H-1B Visas
H-1B visas, introduced under the 1990 Immigration Act, are for bringing skilled foreign workers into the United States. These visas cater to individuals with specialized skills and a bachelor’s degree or equivalent. They are valid for three years, with an option to extend for another three years. Tech companies, hospitals, banks, and universities frequently utilize these visas.
Stephen Brown of Capital Economics estimated around 700,000 H-1B visa holders reside in the United States alongside another 500,000 dependents.
The annual cap stands at 65,000 new visas, with 20,000 additional visas reserved for those with a master’s degree or higher. Certain employers, like universities and nonprofits, are exempt from these limits.
Trump’s Fee Increase
In September, the White House announced a $100,000 fee, replacing the previous $215 fee, plus other charges. This decision drew criticism, as some argue the visa program undermines American workers by compensating foreign workers at a lower rate. Companies, including Tata Consultancy Services, are known for providing Indian workers to clients. In 2023, nearly 75% of approved applications originated from India.
Pew Research indicates that over 60% of H-1B visas since 2012 have gone to computer-related professions. Nonetheless, critics argue that the program encourages companies to replace American workers with cheaper foreign labor. Despite the controversy, visa holders are believed to enhance productivity and complement the work of native Americans.
The fee adjustment resulted in low engagement, with only 85 payments made, generating $8.5 million in revenue according to a government court filing. Bernhard Mueller, co-chair of Ogletree Deakins’ immigration practice, noted the limited revenue impact. The fee increase did not affect foreigners already in the U.S. on student visas.
Court Ruling
U.S. District Court Judge Leo Sorokin in Boston found that the fee contravened the Administrative Procedure Act, which dictates federal agency regulations. Sorokin stated the fee imposed a tax without congressional delegation.
This ruling contradicts a previous judgment that upheld the fee until its September expiration. Separate lawsuits are underway, including one from religious and labor groups in San Francisco, raising the potential for varied appellate court outcomes.
In Boston, states emphasized that the fee limits their ability to hire educators and staff for public institutions, potentially hindering research and decreasing medical staff.
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