Trump administration appeals block on $100,000 H-1B visa fee
A legal fight over a sharp increase in H-1B visa costs is continuing after a federal judge voided the Trump administration's new $100,000 application fee. The dispute affects a visa program widely used by U.S. technology companies and other employers to hire highly skilled foreign workers.
Highlights
- The Justice Department filed a notice of appeal after Judge Leo Sorokin vacated President Donald Trump's $100,000 H-1B visa fee on June 8.
- Sorokin ruled the $100,000 payment constituted an unauthorized tax, exceeding Trump's authority since Congress had not approved the fee.
- Trump's fee hike, imposed in September, raised H-1B application costs from $2,000–$5,000 to $100,000, prompting companies like Walmart to pause participation.
Appeal follows court challenge
The Justice Department filed a notice of appeal after U.S. District Judge Leo Sorokin in Boston vacated the fee on June 8, as first reported by CNBC. Sorokin ruled that President Donald Trump exceeded his authority because the payment operated as a tax that Congress had not approved.The administration said Thursday it will challenge the ruling, which struck down a fee imposed as part of Trump's effort to raise H-1B application costs by tens of thousands of dollars. In his decision, Sorokin said that "the substance and application of the $100,000 payment reveal that it is a tax," and found that Congress had not delegated that power to the executive branch.
Pressure on employers using H-1B workers
The decision is a setback for Trump's effort to restrict the H-1B program, which was created in 1990 and allows U.S. employers to hire nonimmigrant workers in specialty occupations for up to six years. The program is heavily used by U.S. tech companies and other businesses seeking overseas talent.Trump imposed the fee by proclamation last September, arguing that the H-1B system was being abused and replacing American workers. Before that move, H-1B visa fees ranged from $2,000 to $5,000 per application, and several companies, including Walmart, said they would pause participation in the program because of the proclamation. The DOJ did not immediately respond to a request for comment.
In our earlier report on the Treasury Department’s “Fostering the Future” initiative, we explained how the Trump administration aimed to expand access to Trump Accounts for young Americans in foster care and strengthen financial education. The update detailed how state, territorial, and tribal child welfare agencies could open accounts for eligible youth, and how certain benefits could be directed into these accounts to support long-term savings and asset building.
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