US appeals court keeps block on Trump's USD 100,000 H-1B visa fee

Washington,UPDATED: Jul 25, 2026 09:54 IST

A US federal appeals court has refused to pause a lower court order that struck down the Trump administration's decision to impose a USD 100,000 fee on new H-1B visas for highly skilled foreign workers.

The three-judge bench of the Boston-based First Circuit Court of Appeals denied the federal government's request for a stay while it appeals a June 8 ruling by US District Judge Leo T Sorokin, who had held that the fee was an unlawful tax not authorised by Congress.

In its order on Friday, the bench said: "...we deny the defendants' motion to stay pending appeal to this Court, the district court's June 8, 2026, Memorandum and Order and accompanying Judgment." The judges agreed with the plaintiffs, 20 Democrat-ruled states, that "the question here is not whether Congress may delegate the authority in question. It is whether Congress has done so".

President Donald Trump had issued a proclamation in September last year imposing a USD 100,000 fee for obtaining new H-1B visas. The H-1B is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations requiring theoretical or technical expertise. American technology companies rely on it to hire tens of thousands of workers each year from countries such as India and China.

Citing a 1989 US Supreme Court ruling, the appeals court said the executive must show that Congress had spoken "clearly" in conferring discretionary authority to impose financial burdens, whether described as "fees" or "taxes". "However, the Trump administration has not explained why that clear standard isn't required in this case," the order said.

The court also said the administration had failed to show why the plaintiff states would not suffer substantial injury if the stay was denied. The defendants, it said, "cursorily assert that the plaintiffs would face 'minimal' harm without developing that argument -- if it does constitute an argument as to the plaintiffs' lack of substantial injury -- further".

The US issues 65,000 H-1B visas every year, along with another 20,000 for foreign workers with advanced educational qualifications. These visas usually cost between USD 2,000 and USD 5,000 in fees. The latest order means the lower court ruling against the USD 100,000 fee will remain in place while the appeal continues.

With PTI Inputs

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