A federal appeals court on Friday rejected a bid by the Trump administration to halt a judge’s order preventing it from imposing a $100,000 fee on new H-1B visas for highly skilled foreign workers. The ruling keeps in place a June lower-court decision striking down the fee and removes a major uncertainty hanging over H-1B sponsorship plans for the coming fiscal year.
What changed
The Boston-based 1st U.S. Circuit Court of Appeals declined to put on hold a lower court judge’s June 8 ruling in a lawsuit filed by 20 Democratic state attorneys general, striking down the fee on the basis that it constituted an unlawful tax Congress never authorized. The three-judge panel, composed only of appointees of Democratic presidents, said the Trump administration failed to show it was likely on appeal to succeed in showing it had not exceeded its authority by imposing the fee.
The U.S. president issued a proclamation in September that raised the cost of obtaining H-1B visas, which tech companies rely heavily on to bring on foreign workers. Employers seeking a visa for a foreign worker before Trump’s move typically paid about $2,000 to $5,000 in fees depending on various factors.
Why it matters
This ruling is a significant setback for the Trump administration’s effort to restrict H-1B sponsorship through cost escalation. Few employers have paid Trump’s fee since it was instituted, and the appeals court’s decision makes clear that the court system is likely to block implementation going forward—at least until the Trump administration can mount a stronger appeal to a higher court.
For practitioners and employers, the practical impact is substantial: The fee does not apply to visas granted to foreign citizens already in the U.S. on student visas, who generally make up a large share of new H-1B recipients. Without the fee in place, cost-sensitive decisions about whether to sponsor an H-1B petition shift in favor of filing. Indian nationals are among the biggest users of the H-1B route, and the program has been central to the operating model of Indian IT outsourcers, which use it to place engineers, consultants and project managers at client locations in the US.
The litigation is not over. The Trump administration may seek review from the U.S. Supreme Court or pursue other legal arguments on remand in the lower court, but the blocking of the fee remains in effect for now.
Way forward
- Confirm fee status with counsel before filing. Although the fee is blocked, the legal landscape may shift further. Verify the current fee requirements with a licensed immigration attorney before submitting any new H-1B petitions.
- Advise clients on cost savings. If H-1B sponsorship was deferred due to the fee, employers should re-evaluate filing plans. The existing $2,000–$5,000 fee structure is back in place.
- Monitor appellate docket. The Trump administration may appeal to the U.S. Supreme Court or file new legal arguments. Keep watch for further orders from the 1st Circuit or higher courts that could reinstate the fee.
- Document filing rationale. For sponsored workers currently pending visa adjudication, maintain clear records of when petitions were filed and under which fee structure.
Disclaimer
This article is provided for informational purposes only and does not constitute legal advice. Fola Form is not a law firm. Immigration policy can change without notice, and court decisions are subject to appeal. You must consult a licensed immigration attorney to understand how this ruling affects your specific situation and to verify all details against the primary source linked above before taking any action.