Boston: A federal judge in the United States has invalidated President Donald Trump’s controversial $100,000 fee on new H-1B visas, concluding that the measure
amounted to an unlawful tax rather than a legitimate immigration penalty.
The ruling was delivered by US District Judge Leo Sorokin in a lawsuit filed by 20 Democratic state attorneys general.
The Trump administration had argued that the fee was a lawful penalty imposed under federal immigration powers that allow the president to restrict the entry of certain foreign nationals when deemed necessary, Reuters reported.
However, Sorokin disagreed, finding that the fee functioned as a tax and therefore required congressional authorisation.
In his ruling, the judge wrote, “Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called.”
He also cited a recent US Supreme Court decision that struck down Trump’s sweeping tariff measures, saying the same legal reasoning applied in this case.
The H-1B programme issues 65,000 visas annually, along with an additional 20,000 visas for individuals holding advanced degrees. The visas are widely used by technology companies and other employers seeking highly skilled foreign workers.
Before the fee was introduced, employers generally paid between $2,000 and $5,000 in visa-related charges. Trump’s proclamation increased that amount dramatically, arguing that the programme had been misused to replace American workers.
Very few employers paid the new fee. According to court filings, only 85 payments had been received by mid-February.
The White House signalled that it would challenge the ruling.
Spokeswoman Taylor Rogers said, “President Trump has clear legal authority to restrict entry of any class of aliens he determines is not in America’s best interests, and that is exactly what he did.”
Meanwhile, California Attorney General Rob Bonta welcomed the decision, calling the fee an “unlawful and costly $100,000 tax.”
He added, “This tax was an attack on America’s ability to attract and retain the high-skilled talent that strengthens our economy and helps us meet critical workforce needs.”
