In a significant legal development impacting thousands of Indian professionals and US companies, a federal judge has upheld a controversial proclamation by former President Donald Trump imposing a steep $100,000 entry fee on new H-1B visa workers hired from outside the United States.
Court Rejects Business Challenge, Cites Presidential Authority
Judge Beryl A. Howell of the US District Court for the District of Columbia delivered the ruling on Tuesday night, granting a summary judgment in favor of the Trump administration. The court rejected a lawsuit filed by the US Chamber of Commerce, which argued the fee was unlawful. Judge Howell stated the proclamation fell squarely within the broad powers granted to the President under the Immigration and Nationality Act (INA) to regulate entry if deemed in the national interest.
The judge's order emphasized a "straightforward reading" of the law, which gives the President authority over the entry of both immigrants and nonimmigrants. She clarified that debates over the policy's wisdom were beyond the court's jurisdiction, stating the proclamation must be upheld as long as it fits within legal confines.
Fee Details and Industry Backlash
Former President Trump announced the hefty levy through a proclamation on September 19. It triggered immediate alarm among technology firms, healthcare providers, and other industries in the US that depend heavily on foreign talent for specialized roles, many of whom come from India.
In October, US immigration agencies issued a clarification limiting the fee's scope. It was clarified that the $100,000 charge would apply only to new H-1B petitions for workers hired from abroad. It would not affect existing H-1B employees or foreign students already in the US who change their status to H-1B from within the country.
Reacting to the verdict, Daryl Joseffer, Executive Vice President of the US Chamber of Commerce, expressed strong disappointment. "The $100,000 fee makes H-1B visas cost prohibitive for businesses, especially small- and medium-sized businesses that can least afford it," he said. The Chamber is considering further legal options to preserve the program's original intent of helping American businesses access global talent.
Ongoing Legal Battles and Future Implications
This lawsuit is one of three major legal challenges against the entry fee. The first was filed by a coalition called Global Nurse Force, including US healthcare providers and educational institutions, in a California court. More recently, the Attorneys General of California and Massachusetts led a group of 20 Democratic-led states in filing another suit.
Immigration attorneys note that hope is not entirely lost for opponents of the fee, as these other cases are based on different legal arguments. The outcome remains crucial for the Indian diaspora, which is the largest in the world and a primary user of the H-1B program. The ruling reinforces the executive branch's expansive authority over immigration policy, setting a precedent that could influence future administrations.
The decision underscores the ongoing volatility in US immigration policy for skilled workers, creating uncertainty for Indian tech professionals and the American companies that seek to hire them.
