H-1B Visa Fee has been struck down by Federal Judge Leo Sorokin, who declared Trump’s $100,000 application requirement unlawful, ruling that only Congress—not the President—has authority to impose taxes on immigration policy, delivering major relief to U.S. companies hiring high-skilled foreign workers.
“The President lacked any power to tax H-1B applications, and also no delegated power.” — US District Judge Leo Sorokin in his 42 page ruling The lawsuit was brought in December by a coalition of Democratic Attorneys General from several States shortly after Trump set the new $100,000 threshold with the intent to limit the program. [Democratic Attorneys General]
What is H-1B? The importance of the visa in a nutshell
This employment-based visa is designed for foreigners in specialty occupations (technology, engineering, mathematics, science and healthcare) to enter the US for temporary or permanent work. Candidates must have a bachelor’s degree or its equivalent.
Validity: The visa is valid for a period of 3 years and can be renewed for another 3 years thereafter.
Objectives: It assists American companies in remaining competitive and growing their businesses, thus adding more jobs in America.
Constructive: Economists argue that the H-1B program allows American firms to compete internationally, creates new industries and generates local jobs. [Economists]
Trump’s Policy: Why it was done? Trump also had charged a $100,000 fee on H-1B visas, claiming the program was being abused. He based his policy on the idea of “America First”, a protectionist policy meant to protect American labor.
The administration contended the President had the legal power to make this requirement — within discretion under U.S. immigration laws to change policy. But as Judge Sorokin pointed out, nowhere in any of those statutes did Congress give the President power to impose taxes in immigration policy. [Judge Sorokin]
Court Verdict: What does it Mention • Your data is 6 up-to 2023•
In that case, the administration’s argument was rejected by Judge Leo Sorokin. The ruling clearly stated:
Issue Court’s Opinion
Power to impose taxes None for President
Only Congress can change immigration policy
ADMINISTRATION’S CLAIM Rejected The law (“A new incentive for manufacturing business”) lacks the authority to impose taxes
Policy overturned Requirement of $100,000 upfront found unconstitutional
The Justice Department response: “Protect American workers”
“For the Department, it is committed to North American workers and supports 100% President Trump’s ‘America First’ agenda,” Justice Department spokeswoman Natalie Baldasare said.
She noted earlier that a separate decision in the administration’s favor would help it on another challenge against the policy: “We will continue to hold companies accountable when they illegally exploit American workers and misuse the H-1B program.” [Department of Justice]
Attorney General Letitia James replied to the claim: ‘Attempted illegality’,
New York Attorney General Letitia James, who brought this lawsuit stated, “The court has stopped this administration’s illegal efforts to eliminate this critical program and the thousands of jobs it creates.”
“People coming into these visas are great for our state and I will keep fighting against this administration’s unjust and unlawful attacks on immigrant communities, ” James said. [Letitia James]
Easing Impact on US Companies
| Impact Area | Details |
|---|---|
| Lower Costs | Removal of the $100,000 fee reduces financial burden on firms. |
| Workforce | Initiative encourages hiring offshore workers while balancing US needs. |
| Employment Growth | More jobs expected to be created within the US economy. |
| Competitiveness | Enhances global agility and strengthens US firms’ competitive edge. |
| Climate Change | Growth in tech and engineering sectors supports sustainable innovation. |
- Lower Costs
- The reinstatement eliminates the hefty $100,000 fee.
- Companies can redirect savings toward innovation, hiring, and expansion.
- Workforce Development
- Firms gain flexibility to hire offshore talent.
- This balances global expertise with domestic employment opportunities.
- Employment Growth
- Economists project new job creation in the US.
- Skilled workers entering the market stimulate productivity and innovation.
- Competitiveness
- US companies strengthen their global positioning.
- Greater agility allows them to adapt to international market demands.
- Climate Change & Tech Expansion
- Growth in technology and engineering sectors supports green innovation.
- Expanding industries can contribute to climate‑friendly solutions.
📈 Economists’ Analysis of the H‑1B Program
- Boosts Employment: More jobs created domestically.
- Supports Expansion: Firms can scale operations more efficiently.
- Global Competition: Encourages US companies to compete internationally.
- Innovation Driver: Sparks industry advancements and new technologies.
- Policy Context: The Biden administration’s proposed AI Bill of Rights (2023) aligns with competitiveness goals.
The court also explained that only Congress has the power to change immigration policy. Hence, if H-1B visa fees were to be incorporated again down the line, it would require legislation from Congress. This change cannot be implemented unilaterally by the President. [Congress]H-1B Visa Fee Ruled Unconstitutional — Huge Win for US Firms
Federal Judge Leo Sorokin has granted a huge relief to US cos by cancelling the H-1B visa fee. Declaring the $100,000 threshold illegal will make it easier for firms to employ H1-B workers, which will create jobs and spur growth in technology.
The court also explained that only Congress has the power to change immigration policy. Hence, if H-1B visa fees were to be incorporated again down the line, it would require legislation from Congress. This change cannot be implemented unilaterally by the President. [Congress]H-1B Visa Fee Ruled Unconstitutional — Huge Win for US Firms
Federal Judge Leo Sorokin has granted a huge relief to US cos by cancelling the H-1B visa fee. Declaring the $100,000 threshold illegal will make it easier for firms to employ H1-B workers, which will create jobs and spur growth in technology.
The major relief that is present for companies is the cancellation of H-1B visa fees which makes hiring high-skilled workers easier. The development is a major windfall for US enterprises and will bolster growth.
