Big Relief for Indians as US Appeals Court Rejects Bid to Revive $100,000 H-1B Fee

A US federal appeals court has reportedly declined the Trump administration's request to temporarily reinstate a proposed $100,000 H-1B visa fee, leaving in place a lower court ruling that struck down the measure.

As per reports, a three-judge bench of the US Court of Appeals for the First Circuit in Boston denied the federal government's motion to stay a June 8 order issued by US District Judge Leo T. Sorokin, who ruled that the proposed fee amounted to an unlawful tax that had not been authorised by Congress.

Judge Sorokin reportedly held that the executive branch exceeded its legal authority and violated the Administrative Procedure Act by introducing the fee.

Proposed fee would have sharply increased employer costs

As per reports, employers sponsoring H-1B workers previously paid government filing fees ranging from $2,000 to $5,000, depending on the application category. The proposed $100,000 fee would have represented a dramatic increase in hiring costs for new overseas applicants.

The Trump administration had defended the proposal by arguing that the H-1B programme had been used to replace, rather than supplement, American workers with lower-paid foreign labour.

Also read: US judge strikes down Trump’s $1,00,000 H-1B visa fee, calls it unlawful tax: report

What does this mean for Indian professionals?

The appeals court's decision is expected to provide temporary relief to Indian professionals and US employers that rely on the H-1B visa programme. Indians account for the overwhelming majority of H-1B visa recipients each year, particularly in the information technology, engineering, healthcare and consulting sectors.

Had the proposed $100,000 fee been restored, the cost of sponsoring new overseas H-1B workers would have increased significantly, potentially discouraging employers from hiring foreign talent directly from India. Industry experts had also warned that the measure could have reduced employment opportunities for skilled Indian professionals seeking to work in the United States.

However, the ruling does not end the legal dispute. As per reports, the Trump administration can continue pursuing its appeal, meaning the future of the proposed fee will ultimately depend on the outcome of the ongoing court proceedings.