Washington: A federal court in the United States has struck down a policy introduced under President Donald Trump that imposed a $100,000 fee on new H-1B visa applications, ruling that the measure exceeded presidential powers and lacked approval from Congress.
US District Judge Leo Sorokin, delivering the judgment in Boston, held that the executive branch cannot introduce what effectively amounts to a tax without explicit legislative authorization. The court declared the policy invalid and ordered that it be set aside in its entirety.
The legal challenge was brought by a coalition of 20 Democratic state attorneys general, who argued that the administration had overstepped its constitutional authority by introducing the steep fee through executive action.
The H-1B programme, widely used by technology companies and other industries to recruit skilled foreign professionals, annually provides 65,000 regular visas along with an additional 20,000 reserved for applicants holding advanced academic degrees. Before the proposed increase, employers generally paid filing fees ranging between $2,000 and $5,000.
Government records presented during the proceedings indicated that the dramatic fee hike sharply reduced interest in the programme. By mid-February, only a limited number of employers had paid the revised amount, reflecting a significant decline in applications.
Recent figures from US immigration authorities also showed a substantial drop in H-1B registrations for the latest fiscal year, highlighting the impact of changing immigration policies and increased hiring costs.
The Trump administration had defended the fee by arguing that it served as a financial deterrent against misuse of the visa programme and was intended to protect American workers. Officials maintained that some employers had relied excessively on foreign labour, affecting domestic employment opportunities and wage growth.
However, the court concluded that while the government may regulate immigration, it cannot impose new taxes or financial levies without congressional approval, making the policy legally unsustainable.
The ruling is expected to be welcomed by employers and foreign professionals, particularly those from India, who form the largest group of H-1B visa recipients. In recent months, Indian applicants and technology workers had expressed concerns over tighter immigration measures and rising costs associated with working in the United States.
The decision marks a significant legal setback for one of the administration’s key immigration initiatives and could influence future debates on executive authority over visa and immigration policies.
