Court Rejects New Trump Demand
A federal appeals court has temporarily blocked President Donald Trump’s effort to impose a $100,000 fee on certain new H-1B visas, delivering another legal setback for the administration’s broader immigration and America First workforce agenda.
On Friday, the 1st U.S. Circuit Court of Appeals declined to pause a lower court ruling that prevents the administration from collecting the fee while the case moves through the legal system. The lawsuit was filed by 20 Democratic attorneys general, who argued the administration lacked congressional approval to create what they described as a new tax.
The three-judge appeals panel ruled that the Trump administration had not shown it was likely to succeed on appeal. As a result, the lower court’s order remains in effect, meaning employers are not currently required to pay the new fee.
Trump Says H-1B Program Has Hurt American Workers
President Trump announced the higher H-1B visa fee in September as part of his ongoing effort to reduce what he says is the abuse of the foreign worker program.
The H-1B visa allows U.S. companies to hire highly skilled foreign professionals, particularly in technology, engineering, healthcare, finance, and other specialized fields. The program issues 65,000 new visas each year, plus an additional 20,000 visas for applicants holding advanced degrees from American universities.
Before Trump’s policy change, employers generally paid between $2,000 and $5,000 in government filing fees when sponsoring an H-1B worker. The proposed $100,000 fee would have dramatically increased that cost for certain new overseas applicants.
When unveiling the policy, Trump argued that some large corporations have taken advantage of the H-1B program by replacing qualified American workers with lower-cost foreign labor rather than using the visas to fill genuine labor shortages.
The administration said the higher fee was intended to discourage that practice while encouraging businesses to recruit and retain American employees whenever possible.
Student Visa Holders Exempt From New Fee
The proposed fee would not apply to foreign nationals already living in the United States on student visas who later transition into H-1B status. That exemption is significant because international graduates account for a substantial share of new H-1B recipients each year.
Because the policy has remained tied up in court, relatively few employers have paid the higher fee since it was announced.
Legal Fight Continues
The legal battle is far from over. The Trump administration is expected to continue defending the policy as part of its broader effort to tighten immigration rules and prioritize American workers.
For now, however, the appeals court’s decision means the administration cannot enforce the $100,000 H-1B visa fee while the case proceeds, leaving the future of the policy in the hands of the federal courts.
