A federal court blocked the Donald Trump administration's move to raise the application fee for the specialty occupation work visa (H-1B) to $100,000. The court ruled the administration lacked the authority to unilaterally impose a tax without congressional approval and deemed the action illegal.
On the 8th, according to Reuters and The Wall Street Journal (WSJ), Judge Leo Sorokin of the U.S. District Court in Massachusetts struck down the Trump administration's fee increase on new H-1B visa issuances. In the opinion, Sorokin wrote, "Considering the nature of the $100,000 payment and how it is applied, it is revealed to be a tax whatever its name," adding, "The president does not have delegated authority to impose a tax on H-1B petitions." Citing U.S. Supreme Court precedent, the ruling held that the administration cannot exercise taxing power without congressional approval.
The H-1B visa is used to hire foreign talent in specialized fields such as science, technology and engineering. It is a key channel for the U.S. information technology (IT) industry to fill critical positions. Earlier, President Trump in September last year sharply raised the fee for the visa, which had typically been in the $2,000–$5,000 range, to $100,000, citing the need to protect American jobs. Immediately afterward, attorneys general from 20 Democratic-led states filed suit, alleging abuse of authority. Visa issuances plunged after the high fee took effect. As of Feb. 15, new applications received by U.S. Citizenship and Immigration Services totaled 85.
The White House and the Department of Justice pushed back strongly and signaled an appeal. White House Spokesperson Taylor Rogers said in a statement, "President Trump has clear legal authority to restrict the entry of any class of foreign nationals he determines is not in the best interests of the United States, and that is exactly what he did." The statement continued, "A federal judge in Washington has already upheld a nearly identical order, and the administration is confident this order will be reversed on appeal." Ministry of Justice Spokesperson Natalie Baldassare also said, "We will continue to hold corporations accountable when they unlawfully exploit American workers and fail to use the H-1B program as intended."
The specialty occupation visa program has long been a central flashpoint in the legal immigration debate among Trump supporters. Information technology industry leaders, including Elon Musk, have argued that foreign specialized workers are essential for the United States to maintain its lead in innovation. Conservatives, by contrast, have criticized that corporations use the H-1B visa as a pretext to hire foreign workers instead of citizens.
Letitia James, the New York attorney general who led the lawsuit, welcomed the decision, saying, "The court put an end to the administration's unlawful attempt to destroy this vital program and countless jobs." She added, "Visa-holding workers contribute enormously to our state, and we will continue to fight to stop the administration's unfair and illegal attacks on immigrant communities." With the legal battle over attracting high-skilled talent moving to the appellate stage, policy uncertainty is expected to persist for the time being.