US lawmakers welcome court order scrapping USD 100,000 H-1B visa fee
So basically this one directly affects Indians, so it's high-value GK. A US federal judge has struck down the 100,000 dollar fee that President Trump imposed on new H-1B visas, calling it unlawful. Judge Leo Sorokin in Boston ruled the charge was really a tax, and the president can't create a tax without approval from Congress. The case was brought by 20 Democratic state attorneys general. The White House disagrees and plans to appeal. What this really means is a win for Indian tech workers, who get the bulk of H-1B visas. Bottom line for the exam, remember H-1B visas and separation of powers over taxation.
A US federal judge has struck down a$100,000 fee imposed by President Donald Trumpon new H-1B visas, ruling that the charge was unlawful, Reuters reported.
US District JudgeLeoSorokin in Boston said the fee amounted to a tax, which the president did not have the authority to introduce without approval from Congress.
“Here, the substance andapplication of the $100,000 paymentreveal that it is a tax, regardless of what the payment is called,” Sorokin wrote, according to Reuters.
The case was brought by 20 Democratic state attorneys general who challenged the fee announced by Trump in September.
The administration had argued that the charge was a penalty allowed under immigration law, which gives the president powers to restrict entry of foreign nationals in certain cases. But the judge rejected that argument and said federal agencies could not enforce the fee.
The White House said it disagreed with the ruling and plans to challenge it in a higher court.
“President Trump has clear legal authority to restrict entry of any class of aliens he determines is not in America’s best interests,” a spokesperson said, according to Reuters.
The H-1B visa programme allows US companies to hire foreign workers in specialised roles. It offers 65,000 visas each year, with an additional 20,000 for people with advanced degrees.
Before the change, employers usually paid between $2,000 and $5,000 in fees. Trump raised this sharply, saying the programme was being misused to replace American workers.
Thenew fee did not apply to many foreign studentsalready in the US, who form a large share ofH-1B recipients.
Fewcompanies paid thehigher feeafter it was introduced. According to a court filing cited by Reuters, only 85 payments had been made by mid-February.
The policy also led to multiple legal challenges, including a separate case filed by the US Chamber of Commerce.
California Attorney General Rob Bonta, who led the case, welcomed the ruling.
“This tax was an attack on America’s ability to attract and retain the high-skilled talent that strengthens our economy,” he said, according to Reuters.
The ruling is seen by the states as support for maintaining access toskilled foreign workers in the US.
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