US judge strikes down Trump’s $100,000 H-1B visa fee as unlawful tax

A US federal judge on Monday invalidated President Donald Trump’s $100,000 fee on new H-1B visas, ruling that it amounted to a tax imposed without congressional authorisation.

US District Judge Leo Sorokin in Boston issued the decision in a lawsuit filed by 20 Democratic state attorneys general challenging the fee announced by Trump in September.

The ruling prevents the US State Department and US Citizenship and Immigration Services from implementing the charge.

The Trump administration had argued that the payment was a lawful monetary penalty imposed under federal immigration law, which allows the president to restrict entry of foreign nationals considered detrimental to US interests.

Sorokin rejected that position, finding that the substance and application of the $100,000 payment made it a tax rather than a penalty and that immigration law did not authorise the president to impose it.

The judge referred to a US Supreme Court ruling issued in February that struck down tariffs pursued by Trump under legislation intended for national emergencies. Sorokin said the same reasoning meant the president could not use immigration powers to levy a tax.

White House spokeswoman Taylor Rogers said the administration believed the ruling would be overturned on appeal and maintained that Trump had the authority to restrict the entry of foreign nationals.

The H-1B programme provides 65,000 visas annually, with another 20,000 reserved for workers holding advanced degrees. The visas are generally approved for periods ranging from three to six years.

Before Trump introduced the new charge, employers seeking H-1B visas for foreign workers typically paid between $2,000 and $5,000, depending on the application and related requirements.

Trump said when announcing the policy that the programme had been used to replace American employees with lower-paid foreign workers.

The $100,000 fee did not apply to foreign citizens already present in the United States on student visas, a group that accounts for a large share of new H-1B recipients.

Few companies paid the charge after it took effect. US Citizenship and Immigration Services had received 85 payments of $100,000 each by February 15, according to an agency official’s March court filing.

The administration has separately introduced enhanced screening of H-1B applicants and proposed a visa selection process favouring workers with higher qualifications and salaries.

The fee has faced at least three legal challenges.

The US Chamber of Commerce filed a separate case and is appealing a December decision by a judge in Washington, DC, who rejected its claim that Trump lacked authority to establish the fee.

California Attorney General Rob Bonta, who led the coalition of states in the case before Sorokin, welcomed the ruling and said the charge had affected the country’s ability to attract and retain skilled foreign workers needed by the economy.