A federal judge in Boston on Monday struck down the Trump administration's dramatic increase in the fee for H-1B work visas, ruling that the White House overstepped its authority by imposing the $100,000 charge without congressional approval. The decision, which sided with 20 states, marks a significant setback for President Donald Trump's efforts to overhaul the visa program, which he has argued undercuts American workers.
The H-1B visa program, created by the 1990 Immigration Act, allows U.S. companies to hire foreign workers with specialized skills and at least a bachelor's degree.
The visas are valid for three years and can be extended for another three. They are widely used by tech companies, hospitals, banks, and universities to fill skilled positions, with at least 60% of approved visas since 2012 going to computer-related jobs, according to the Pew Research Center.
The annual cap is 65,000 new visas, plus an additional 20,000 for those with advanced degrees, distributed by lottery.
In September, the White House announced the fee hike from $215 to $100,000, taking effect within 24 hours. The administration argued that the program incentivizes companies to replace American workers with lower-paid foreign labor, citing a 2020 report from the left-leaning Economic Policy Institute that found 60% of H-1B positions certified by the Labor Department paid below the median wage for the job.
Critics of the program, including staffing firms like Tata Consultancy Services, often supply Indian workers to corporate clients; nearly three-quarters of approved applications in 2023 came from India.
However, U.S. District Court Judge Leo Sorokin ruled that the fee violated the Administrative Procedure Act, which governs how federal agencies issue regulations.
"The Court finds that the Policy imposes a tax on H-1B petitions without the requisite delegation by Congress," Sorokin wrote, contradicting an earlier federal ruling that had upheld the fee hike and kept it in effect until its scheduled expiration in September. The states argued that the policy would hinder their ability to hire educators, staff public colleges, conduct academic research, and maintain medical workers.
The ruling is a victory for tech companies and universities that rely on the program to attract top talent, but it may not end the debate over the visa's impact on American workers. The Trump administration has not yet indicated whether it will appeal the decision.