A U.S. federal judge struck down a proposal by the Trump administration to impose a $100,000 [1] annual fee on H-1B skilled-worker visas.
The ruling halts a significant attempt by the administration to alter the financial requirements for foreign professionals working in the U.S. By invalidating the fee, the court prevents a sharp increase in costs for companies that rely on high-skilled international labor.
The district court judge ruled that the authority to impose taxes or fees of this nature belongs exclusively to Congress, not the president. "Can't allow the President to impose a tax," the judge said.
Donald Trump responded to the court's decision by criticizing the judiciary. "They're hurting our country," Trump said.
The proposed fee of $100,000 [1] for H-1B visas was part of a broader set of immigration cost adjustments. Other proposals included a $1,000,000 [2] fee for a "gold card" visa, intended for specific categories of high-value immigrants.
Business groups had previously expressed concern over the financial impact of these measures. A spokesperson for the U.S. Chamber of Commerce said the $100,000 H-1B fee would impede economic growth.
The court's decision reinforces the legal boundary between executive proclamations and legislative taxing power, a distinction that has been central to several immigration-related legal challenges.
“"Can't allow the President to impose a tax."”
This ruling underscores the constitutional limit of executive power regarding fiscal policy and immigration. By determining that the H-1B fee constitutes a tax, the court ensures that any significant changes to the cost of skilled-worker visas must pass through congressional legislation rather than executive order, maintaining the status quo for tech and healthcare employers who utilize these visas.
