BOSTON: A US federal judge on Monday struck down a $100,000 fee imposed by President Donald Trump on new H-1B visas for highly skilled foreign workers, ruling that the charge amounted to an unlawful tax that had not been authorised by Congress.
US District Judge Leo Sorokin issued the ruling in Boston in a lawsuit brought by 20 Democratic state attorneys general challenging the fee announced by Trump in September.
The decision marks a setback for the administration’s efforts to restrict access to the H-1B visa programme, a key pathway used by US employers to recruit highly skilled foreign professionals.
In his ruling, Judge Sorokin rejected the administration’s argument that the fee constituted a lawful monetary penalty imposed under federal immigration laws.
The administration had argued that the president possessed authority to impose the charge as part of efforts to restrict the entry of certain foreign nationals.
Sorokin disagreed, finding that the payment functioned as a tax rather than a penalty.
“Here, the substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called,” the judge wrote.
The lawsuit was filed by a coalition of 20 Democratic state attorneys general, who argued that the fee would harm public institutions that rely on foreign professionals.
According to court filings, the states said the policy would undermine their ability to recruit staff for publicly funded colleges and universities, schools and healthcare systems.
The H-1B programme provides 65,000 visas annually for highly skilled foreign workers, with an additional 20,000 visas available for applicants holding advanced degrees.
The visas are generally approved for periods ranging from three to six years.
Before Trump’s proclamation, employers seeking H-1B visas typically paid between $2,000 and $5,000 in government fees, depending on various factors.
According to a March court filing by the administration, US Citizenship and Immigration Services had received only 85 payments of the $100,000 fee as of 15 February.
