A US federal judge has blocked President Donald Trump’s administration from imposing a $100,000 fee on employers filing visa applications for highly skilled foreign workers.
District Judge Leo Sorokin ruled in a lawsuit filed by 20 Democratic-led states that the move usurped the taxation powers held by Congress and that the fee for H-1B visas constituted an unlawful tax.
"The substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called," Sorokin wrote on Monday in his 42-page ruling.
"The President had no power or delegated authority to impose a tax on H-1B petitions," he wrote.
A different federal judge upheld the $100,000 fee in a separate case in December. That ruling is currently being appealed.
That lawsuit was brought by the US Chamber of Commerce, a pro-business lobbying group, and the Association of American Universities, which represents 69 US-based research schools.
Not enough homegrown talent
Trump announced the new H-1B visa policy in September, arguing that the system was being abused to replace American workers with people willing to work for less money.
The H-1B fee is part of a larger immigration clampdown by the administration, which has unleashed a massive push against migrants.
The United States awards 85,000 H-1B visas per year on a lottery system. India accounts for around three-quarters of the recipients.
H-1B visa fees previously cost up to $5,000.
Tech entrepreneurs, including Trump's former ally Elon Musk, had warned against targeting H-1B visas, saying the United States does not have enough homegrown talent to fill key tech sector jobs.
