A federal judge in Boston struck down the Trump administration's $100,000 fee on new H-1B visa petitions, immediately lifting the costly barrier imposed on U.S. employers seeking highly skilled foreign talent.
The ruling: U.S. District Judge Leo Sorokin sided with 20 states led by California AG Rob Bonta, ruling that "the substance and application of the $100,000 payment reveal that it is a tax," and that Congress had not delegated that taxing power to the executive branch. The court also found the policy violated the Administrative Procedure Act, which governs how federal agencies issue regulations.
The complication: The ruling directly contradicts an earlier federal court decision upholding the fee in litigation brought by the U.S. Chamber of Commerce. An appeals court heard the Chamber's bid to revive its case and could reverse it at any time.
What's next: The federal government is expected to appeal to the First Circuit and potentially the Supreme Court, either of which could reinstate the fee. In the meantime, employers may submit H-1B petitions without the $100,000 payment.
