US Judge Voids $100,000 Fee on H-1B Work Visas

A federal judge has struck down a $100,000 fee for new H-1B visas for high-skilled foreign workers imposed by the Trump administration, ruling that it amounted to an illegal tax that lacked congressional approval.

The decision was issued by a district judge in Boston in response to a lawsuit filed by a coalition of 20 Democratic state attorneys general. The group challenged a measure announced in September that sharply increased the cost for employers seeking work visas for foreign professionals.

The H-1B programme provides 65,000 visas each year, plus an additional 20,000 for holders of advanced degrees. Before the fee increase, application costs typically ranged from about $2,000 to $5,000, depending on the circumstances.

According to the plaintiffs, the new fee significantly discouraged companies from applying for visas. In a court filing submitted in March, they said that by mid-February only 85 employers had paid the $100,000 charge.

The Trump administration argued that the payment was not a tax but a monetary penalty that the president was authorised to impose under federal immigration law. The judge rejected that argument.

"The substance and manner of application of this payment demonstrate that it is a tax regardless of how it is labeled", the ruling said.

The White House did not immediately comment on the decision.

(reuters, max)