Trump-Era H-1B Visa Fee Faces Legal Scrutiny as Uptake Remains Low
WASHINGTON – A $100,000 fee imposed by the Trump administration on companies hiring skilled foreign workers via the H-1B visa program is facing mounting legal challenges, with a recent court filing revealing minimal uptake since its implementation last September. Only 70 employers have paid the fee to date, according to the Justice Department, leading officials to concede it is not currently generating significant revenue.
The lawsuit, filed in Oakland, California, centers on the legality of the fee, with plaintiffs like Global Nurse Force, a nurse recruiting firm, arguing it unduly burdens smaller employers reliant on the H-1B program. They contend the fee is “arbitrary and capricious” and exceeds the authority granted to the executive branch, asserting that Congress intended immigration fees to cover only program administration costs.
Department of Justice attorney Tiberius Davis argued in court that the fee was enacted through a presidential proclamation, circumventing the usual notice-and-comment procedures required for executive orders.
The legal battle gains momentum following a recent Supreme Court decision striking down President Trump’s global tariffs regime, a ruling attorneys in both the Oakland case and a separate appeal before the U.S. Court of Appeals for the DC Circuit believe strengthens their arguments. The court found the Constitution grants taxing powers to Congress, not the executive branch, as reported by Bloomberg.
The H-1B visa program is particularly crucial for Silicon Valley companies, which heavily rely on it to recruit specialized talent from abroad. The Trump administration framed the fee as a measure to reduce this dependence and prioritize American workers. However, critics argue it stifles innovation and creates barriers for businesses.
A similar injunction request was previously denied by a federal judge in a case brought by the U.S. Chamber of Commerce. The Oakland lawsuit represents a continuing effort to dismantle the fee, with the outcome potentially reshaping the landscape of skilled worker immigration to the United States.