WASHINGTON – A US federal judge on June 8 blocked President Donald Trump from imposing a US$100,000 (S$128,966) fee on employers filing visa applications for foreign highly-skilled workers.
District Judge Leo Sorokin ruled in a lawsuit filed by 20 Democratic-ruled states that the move usurped taxation powers held by Congress and the fee for the H-1B visas constituted an unlawful tax.
“The substance and application of the US$100,000 payment reveal that it is a tax, regardless of what the payment is called,” Sorokin wrote in his 42-page ruling.
“The President had no power or delegated authority to impose a tax on H-1B petitions,” he wrote.
A different federal judge upheld the US$100,000 fee in December in a separate case. That ruling is currently being appealed.
That lawsuit was brought by the US Chamber of Commerce, a pro-business lobbying group, and the Association of American Universities, which represents 69 US-based research schools.
Trump announced the new H-1B visa policy in September, arguing that the system was being abused to replace American workers with people willing to work for less money.
The H-1B fee is part of a larger immigration crackdown by the Republican president, who has unleashed a massive push against migrants since returning to the White House.
The United States awards 85,000 H-1B visas per year on a lottery system. India accounts for around three-quarters of the recipients.
H-1B visa fees previously cost up to US$5,000.
Tech entrepreneurs – including Trump’s former ally Elon Musk – had warned against targeting H-1B visas, saying that the United States does not have enough homegrown talent to fill important tech sector job vacancies. AFP