A federal judge in Massachusetts struck down a $100,000 fee President Donald Trump ordered for H-1B visa applications, ruling that the increase was an unlawful tax.
U.S. District Judge Leo T. Sorokin said Monday that the fee must be vacated because Congress had not delegated authority for such a tax. “The court finds that the policy imposes a tax on H-1B petitions without the requisite delegation by Congress,” Sorokin wrote.
The ruling provided relief for U.S. technology companies that rely on skilled foreign workers.
Sorokin sided with California and 19 other states, which argued the policy exceeded Trump’s authority and would harm public sectors including education and health care.
The White House disputed the ruling. “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,” spokesperson Taylor Rogers said in a statement. “The H-1B program has been abused for decades, and President Trump finally took action to fix it. A federal judge in Washington already upheld a nearly identical order, and the administration is confident this order will be reversed on appeal.”
The case is one of at least three challenges to the policy. The U.S. Chamber of Commerce and a nurse recruiting firm filed separate lawsuits. In December, a judge rejected the Chamber’s request to block the fee, and the Chamber appealed to a federal appeals court in Washington.
The H-1B visa program allows U.S. employers to hire college-educated foreign workers for specialized jobs. In September, Trump signed a proclamation raising the application fee to discourage what he said was abuse of a program that displaced U.S. workers.
The fee was set to expire after one year unless renewed by the administration. It was the first of several administrative changes targeting the visa program. The administration also proposed raising the minimum wage for H-1B workers and changed the annual H-1B lottery to favor the highest-paid applicants.