Federal Judge Blocks H-1B Visa Fee
A Boston federal judge has prohibited the Trump administration’s plan to impose a $100,000 fee on H-1B visa applications, labeling it an unauthorized tax lacking congressional approval. Introduced last year, the policy aimed to increase fees from $2,000-$5,000 to benefit U.S. citizens.
Administration’s Proposal
On Monday, the Trump administration revealed a proposal to solidify the significant fee for cap-subject H-1B petitions, targeting highly skilled foreign workers. The proposal intends to replace the fee originally introduced by presidential proclamation last year but halted by the court.
The Department of Homeland Security plans to charge $103,265 as an added fee for each H-1B petition within the annual statutory cap, including petitions eligible for the advanced-degree exemption. Industries employing H-1B visa holders, like tech, education, and research, depend heavily on these worker visas.
The fee aims to cover federal costs in managing the legal immigration system, affecting actions by DHS, Department of Justice, Department of State, and Department of Labor.
Federal Judge’s Ruling
A federal judge temporarily blocked the $100,000 H-1B visa fee, outlining it as an unconstitutional tax. An appeals court is currently reviewing the judge’s verdict. Another court examines whether a business group’s challenge had been correctly denied. The fee increase was set to expire soon, a year after its initiation.
Fee Proposal Details
The proposed rule from DHS is posted for public scrutiny and scheduled for publication in the Federal Register. It suggests making the $103,265 fee permanent. This fee could be finalized by year-end.
Previously, H-1B visas required fees between $2,000 and $5,000 before Trump’s changes. The fee proposal would affect cap-subject H-1B petitions, including some filed by foreign students in the U.S. choosing to switch to H-1B status, but it excludes cap-exempt petitions and common extensions for current holders.
Program Details and Impact
Under the H-1B program, U.S. employers are allowed to hire foreign workers for specialized roles with 65,000 visas given annually under the regular cap. An additional 20,000 visas are allotted for workers with advanced degrees from U.S. institutions, typically valid for up to three years, extendable up to six years.
Trump has argued that the program might be exploited by companies that replace American workers with lower-cost foreign labor. Conversely, business groups and several U.S. firms have defended the program as crucial due to the shortage of qualified American personnel and essential for recruiting elite workers to support the economy.
Court documents show that around 70 employers have paid the $100,000 fee across 85 visa applications as of February.
Challenges to the Rule
The U.S. Chamber of Commerce, Democratic-led states, labor unions, and employers are contesting the fee through lawsuits. These could adapt to contest the newly proposed rule once finalized.
Besides the fee proposal, the Trump administration enforced stricter scrutiny of H-1B applicants and suggested a revamped visa selection method to prioritize higher-skilled and better-compensated applicants. DHS recently added application fees up to $4,500 for extending H-1B workers’ stay or transferring overseas employees to the U.S.
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