H-1B visa fee: Second US judge blocks Trump’s $100,000 charge

A second US federal judge on Wednesday blocked President Donald Trump’s unprecedented $100,000 fee on new H-1B visas for highly skilled foreign workers.

US District Judge Haywood Gilliam in Oakland, California, ruled that US Citizenship and Immigration Services and the State Department had failed to follow required rule-making procedures before introducing the fee.

Read more: US H-1B lottery changes from October 1: What Indian workers should know about new wage-based selection system


Gilliam, who was appointed by former President Barack Obama, granted a request from a coalition of unions, employers and nonprofits seeking to block the fee while their lawsuit, filed in October, moves forward.

The fee was temporarily blocked in June by a federal judge in Boston, ruling in a separate case brought by 20 states. A Boston-based appeals court in July declined to pause that decision.

The Department of Homeland Security in August moved to adopt a permanent fee of about $103,000 that, when finalized, will likely be challenged in court. But that will involve different legal issues than lawsuits over the fee set by Trump. These suits have focused on the president's power to set such a fee unilaterally.

The $100,000 fee was originally set to expire September 21 but Trump, a Republican, recently extended it for another year.

Why did Trump impose the $100,000 fee?

The H-1B programme allows US employers to hire foreign workers for specialty occupations that typically require specialised education or training.

Congress created the programme in 1990. It provides 65,000 visas each year, with another 20,000 reserved for workers with advanced US degrees.

The programme is particularly important to technology companies, which rely on H-1B visas to recruit specialised workers from countries including India and China. The visas generally allow workers to stay in the US for three years, with the possibility of extending them to six years.

Before Trump introduced the $100,000 fee, employers typically paid about $2,000 to $5,000 in government fees, depending on the circumstances of the application.

Trump introduced the charge as part of his broader immigration crackdown, arguing that companies had abused the H-1B programme by using foreign workers to replace American employees with cheaper labour.

His administration has also increased scrutiny of H-1B applicants and proposed changes to the visa selection process that would favour higher-skilled and higher-paid workers.

The administration invoked presidential powers under federal immigration law to restrict the entry of foreign nationals whose admission it said could be detrimental to US interests.

The $100,000 charge marked a dramatic increase from the programme's traditional government fees.

What happens to the fee now?

Trump's original $100,000 fee was due to expire on September 21, but the White House extended the policy for another year. That would keep the charge in place through September 2027, although court orders have now blocked its implementation.

Separately, the Department of Homeland Security has proposed a permanent fee of about $103,000. The proposal is being pursued through a formal rule-making process, raising different legal questions from those involved in the lawsuits challenging Trump's original $100,000 charge. The proposed fee is also likely to face legal challenges.

The US Chamber of Commerce, the country's largest business lobbying group, has also filed a lawsuit challenging the $100,000 fee. It is appealing after a judge rejected its argument that Trump lacked the authority to impose the charge.

Few employers have paid the $100,000 fee since it was introduced, according to Reuters.

What H-1B visa means for foreign workers

The H-1B programme allows US employers to hire foreign workers with specialised skills and training. Technology companies, in particular, rely heavily on H-1B visa holders to fill skilled roles.

The programme provides 65,000 visas each year, along with another 20,000 for workers with advanced degrees. H-1B visas are generally approved for three years and can be extended to six years.

Trump’s order has sharply increased the cost of obtaining an H-1B visa. Fees had typically ranged from about $2,000 to $5,000, depending on the applicant and employer.

In introducing the higher fee, Trump invoked presidential powers under federal immigration law to restrict the entry of certain foreign nationals deemed detrimental to US interests. He has argued that companies have abused the H-1B programme by replacing American workers with cheaper foreign labour.

The Trump administration has also ordered enhanced vetting of H-1B applicants and proposed a new visa selection system that would give greater weight to higher-skilled and higher-paid workers.