A US federal appeals court has declined to revive the Trump administration’s proposed $100,000 fee on new H‑1B visa applications, marking another significant legal setback for the policy and offering major relief to thousands of Indian professionals who rely on the programme. The ruling effectively blocks the fee from taking effect unless Congress explicitly authorises such a charge.
The decision follows a detailed judgment by US District Court Judge Leo Sorokin, who concluded that the executive branch had exceeded its authority and violated the Administrative Procedure Act. In his ruling, Sorokin wrote that the policy “imposes a tax on H‑1B petitions without the requisite delegation by Congress,” making it unlawful for the administration to enforce.
The proposed fee — announced during Trump’s second term — was intended to discourage dependence on foreign skilled workers and push companies to hire domestically. But critics argued it would severely disrupt sectors like technology, healthcare, and research, where H‑1B workers, especially from India, play a crucial role. Nearly three‑quarters of all H‑1B visas typically go to Indian nationals.
The appeals court’s refusal to revive the fee means the existing H‑1B cost structure remains unchanged for now, preventing a dramatic financial burden on applicants and employers. Immigration experts say the ruling reinforces limits on executive power and underscores that major visa‑related fees must be legislated, not unilaterally imposed.
For Indian workers and US companies, the decision provides temporary stability amid broader debates over skilled immigration and labour shortages. However, policy analysts caution that future administrations could attempt similar measures through Congress, keeping long‑term uncertainty alive.