Federal Judge Blocks Trump Administration’s H-1B Visa Fee Proposal

A federal judge in Boston has blocked the Trump administration’s attempt to impose a fee of $100,000 on H-1B visa petitions, labeling it an unauthorized tax. Originally introduced last year, this policy significantly increased the fee from $2,000-$5,000, aiming to prioritize U.S. citizens in the workforce. The White House announced plans to appeal this decision.

The Department of Homeland Security put forth a rule that proposed a $103,265 fee for every H-1B petition subject to the annual statutory cap, affecting the tech, education, and research sectors. This fee was intended to cover costs associated with processing lawful immigration programs handled by various federal departments.

The proposed H-1B fee is intended to recover costs across the federal government for lawful immigration programs, as stated by U.S. Citizenship and Immigration Services spokesperson Zach Kahler.

An appeals court is considering the Boston judge’s ruling, while another court reviews if a challenge from a business group was appropriately dismissed. The temporary fee hike from last year is set to expire soon, with the new DHS rule scheduled for publication. If approved, the $103,265 fee would become permanent.

The H-1B program allows U.S. companies to hire foreign talent for specialized roles. Annually, 65,000 visas are available under the regular cap, with an additional 20,000 visas for those holding advanced degrees from U.S. institutions. Preceding the fee increase, these visas usually came with fees between $2,000 and $5,000.

The proposed fee applies to all cap-subject petitions, including certain foreign students aiming to change visa status. However, cap-exempt petitions and routine extensions aren’t affected by this cap.

President Trump has criticized the H-1B program, arguing that it replaces American workers with cheaper overseas labor. In contrast, numerous U.S. businesses claim the program is critical to fill skill gaps in the domestic workforce and enhances America’s economic dynamics.

Court documents reveal that around 70 employers have paid the $100,000 fee for 85 visa applications. The fee proposal faces opposition from the U.S. Chamber of Commerce, Democratic-led states, labor unions, and employer coalitions.

The administration has also pushed for stricter scrutiny of H-1B applicants, advocating for a process favoring higher-skilled and better-compensated workers. Additionally, DHS introduced fees up to $4,500 for visa stay extensions or employee transfers to the U.S.