A U.S. federal judge struck down a $100,000 [1] fee on new H-1B visa petitions imposed by the Trump administration, declaring the charge unlawful.
The ruling removes a significant financial barrier for U.S. employers and foreign skilled workers, particularly those from India who rely heavily on the H-1B program for employment in the United States.
U.S. District Judge Leo Sorokin issued the decision on Monday, June 9, 2021, in the U.S. District Court for the Eastern District of New York [1, 3]. The judge ruled that the fee functioned as an unlawful tax because it lacked the necessary approval from Congress, and exceeded the authority of the president [1, 3].
"The fee is an unlawful tax," Sorokin said [1]. He said that "Trump had no authority to impose such a fee without Congressional approval" [3].
The decision provides immediate relief to a wide range of applicants. While some reports suggest the impact reaches millions of skilled workers, other accounts specify the relief primarily benefits thousands of Indian professionals [2].
Parmeshwar Bawa said, "This is a major relief for thousands of Indian professionals" [2].
The H-1B visa program allows U.S. companies to employ foreign workers in specialty occupations. The contested $100,000 [1] fee had created a steep cost for companies seeking to bring in new talent, which critics argued would stifle innovation and unfairly target specific nationalities.
“"The fee is an unlawful tax."”
This ruling reinforces the legal principle that the executive branch cannot unilaterally create new taxes or significant financial levies without legislative authorization. By striking down the fee, the court prevents the H-1B process from becoming a revenue-generating tool for the government and ensures that the cost of hiring high-skilled foreign labor remains tied to established statutory fees rather than presidential mandates.
