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

A federal judge on Monday struck down a $100,000 fee imposed by US President Donald Trump on new H-1B visas for highly skilled foreign workers, ruling that it constituted an unlawful tax that Congress had never authorised, as per Reuters.

The District Judge in Boston reportedly issued the ruling in a lawsuit filed by 20 Democratic state attorneys general challenging the fee announced by Trump in September.

The attorneys general argued that the measure dramatically increased the cost of obtaining H-1B visas. The judge concluded that the fee amounted to an unlawful tax that lacked congressional authorisation.

Earlier this month, concerns over the impact of a $1,00,000 H-1B visa fee extended beyond healthcare and into education, as lawmakers urged the Department of Homeland Security to consider relief for foreign teachers recruited to work in remote and underserved communities. 

During a Senate Appropriations Subcommittee hearing on the Department of Homeland Security's fiscal year 2027 budget request, Senator Lisa Murkowski of Alaska said school districts in rural areas face challenges similar to those confronting hospitals trying to recruit doctors from overseas.

While the hearing's primary discussion on employment-based visas focused on doctors and healthcare shortages, Murkowski signalled that educators are facing many of the same workforce pressures, particularly in isolated communities where local recruitment has proved difficult.

"I'll follow up with you about the issue that I raised previously with regards to H-1B visas for teachers," Murkowski told Homeland Security Secretary Markwayne Mullin near the end of the hearing. "I know Senator Collins raised it for medical professionals, but we're really anxious about this as school districts are looking to bring on and hire more of our teachers."

The remarks came after a separate exchange between Mullin and Senator Susan Collins, who pressed the administration to consider exemptions for doctors serving rural hospitals that struggle to recruit qualified medical professionals.

During that discussion, Mullin acknowledged concerns about staffing shortages in remote communities and said DHS was willing to examine possible solutions.

"We do have some authority and flexibility to be able to waive some of this on a case by case," Mullin said.

He added that the department was open to reviewing proposals aimed at improving the system.

"We're happy to look into it, look at language, try to get it better," Mullin said during the exchange on visa fees.

Although Murkowski did not provide specific examples during the hearing, Alaska's remote communities have long relied on recruiting educators from outside the state to address shortages in schools serving sparsely populated regions.

The H-1B visa programme allows US employers to hire foreign professionals in specialised occupations requiring advanced skills or education. While the programme is most commonly associated with technology workers, it is also used by educational institutions, healthcare providers and research organisations. 

(with inputs from syndicated feed)