U.S. Appeals Court Upholds Block on $100,000 H-1B Visa Fee as Senator Proposes Stricter Bill
A U.S. federal appeals court has refused to stay a lower court order that struck down the Trump administration's decision to impose a $100,000 fee on H-1B visas for highly skilled foreign workers. The three-judge bench at the Boston-based First Circuit Court of Appeals denied the federal government's motion to stay U.S. District Judge Leo T. Sorokin's June 8 ruling, which termed the fee an unlawful tax not authorized by Congress.
The judges agreed with the plaintiffs — 20 Democrat-ruled states — that "the question here is not whether Congress may delegate the authority in question. It is whether Congress has done so." Citing a 1989 U.S. Supreme Court ruling, the appeals court said the executive must show that Congress had spoken "clearly" in conferring discretionary authority to impose financial burdens, whether described as "fees" or "taxes." The order noted that the Trump administration had not explained why that clear standard isn't required in this case, and that it had failed to show why the plaintiff states would not suffer substantial injury if the stay was denied. The defendants "cursorily assert that the plaintiffs would face 'minimal' harm without developing that argument," the court stated.
The H-1B visa is a non-immigrant visa that allows U.S. companies to employ foreign workers in specialty occupations that require theoretical or technical expertise. American technology companies depend on it to hire tens of thousands of employees each year from countries like India and China. The U.S. issues 65,000 H-1B visas annually, plus an additional 20,000 for foreign workers with advanced educational qualifications. These visas usually cost between $2,000 and $5,000 in fees.
In a separate development, U.S. Senator Tim Sheehy, a Republican from Montana, introduced a bill in the Senate to pause the issuance of new H-1B visas for three years and codify the $100,000 fee imposed by the Trump administration. The bill, named the "End H-1B Abuse Act," seeks to restore the H-1B program to its original intent and put American workers first by closing loopholes that incentivize abuse, strengthening guardrails, and prioritizing national security interests.
"The H-1B programme was created to address workforce shortages for specialised, difficult-to-fill positions – not to displace qualified, hardworking Americans with cheaper, foreign labour," Mr. Sheehy said in a statement. He described the legislation as "a critical, proactive step" to protect American workers, curb H-1B fraud, and address what he called national security risks created by a program that has operated for years with inadequate guardrails.
The proposed legislation is supported by the Immigration Accountability Project and the Federation for American Immigration Reform (FAIR). The bill proposes to pause new H-1B visas for three years and then restart the program under far tighter limits and higher standards. It also seeks to permanently replace the random lottery in statute with a wage-based selection system and ban concurrent employment and third-party staffing-agency models. Additionally, the bill would end the "dual intent" provision for H-1B visa holders, prevent H-class visa holders from bringing dependents, bar federal agencies from sponsoring or employing non-immigrant visa holders, and eliminate work authorization for foreign students and certain exchange visitors by ending Optional Practical Training-style programs.
The court's decision and the legislative proposal represent ongoing scrutiny of the H-1B visa program, which has been a point of contention between those who argue it fills critical skills gaps and those who believe it undercuts American workers.