New Delhi: A US federal court has struck down the Trump administration’s controversial decision to impose a $100,000 fee on new H-1B visa applications, ruling that the measure exceeded presidential authority and amounted to an unauthorised tax.
The decision was delivered by a federal judge in Boston, who concluded that the fee could not be legally imposed without explicit approval from Congress. The court held that the executive branch lacked the authority to introduce what effectively amounted to a tax on H-1B visa petitions, declaring the policy unlawful and invalid in its entirety.
The ruling came in response to a legal challenge filed by a coalition of Democratic state attorneys general after the administration announced the fee increase in September. The policy had marked a dramatic departure from the existing fee structure, under which employers typically paid between $2,000 and $5,000 to sponsor highly skilled foreign workers.
The H-1B programme remains one of the primary pathways for companies in the United States to recruit specialised talent from overseas, particularly in science, technology, engineering and mathematics fields. The programme issues 65,000 visas annually, along with an additional 20,000 visas reserved for individuals holding advanced degrees.
Government data indicated that the steep fee hike had significantly reduced employer participation. By mid February, only a small number of employers had paid the increased fee, reflecting widespread reluctance to absorb the added cost. Recent figures also showed a sharp decline in H-1B registrations for the upcoming fiscal year.
The administration had defended the measure by arguing that it was necessary to curb alleged misuse of the H-1B programme and protect employment opportunities for American workers. Officials contended that some companies had used the programme to suppress wages and replace domestic workers with lower cost foreign labour.
The ruling is expected to have particular significance for India, whose professionals account for a large share of H-1B visa holders. The proposed fee increase had generated concern among Indian workers, students and technology firms, especially amid tighter immigration policies and changing hiring trends in the US technology sector.
The court’s decision now removes a major financial hurdle for employers seeking to hire skilled foreign talent and restores the previous fee framework for H-1B visa applications.
