Did Trump’s decision to impose a $100,000 fee on H-1B visas collapse in court? Will Judge Leo Sorokin’s decision provide a big relief to Indian IT companies and millions of professionals? Why did H-1B applications suddenly decrease after charging such huge fees? Do the new changes in H-1B rules signal a major change in US immigration policy?
H1B Visa Fee Verdict: US President Donald Trump’s tough immigration agenda was dealt an unprecedented and devastating legal blow on Monday, when a federal judge completely rejected one of his most controversial decisions. US District Judge Leo Sorokin of Boston declared that the huge fee of $100,000 (about Rs 84 lakh) imposed by the Trump government on new H-1B visas for highly skilled foreign workers was completely illegal. This decision has not only created a stir in the White House, but has also given a huge and unexpected relief to big tech companies around the world and Indian IT professionals.
What was Trump’s ‘secret tax’ plan, which scared Silicon Valley?
In September last year, when the Trump administration announced a fee of $100,000 for H-1B visa, the whole world was shocked. Previously, American employers had to spend just $2,000 to $5,000 to sponsor a foreign worker, depending on a variety of factors. This sudden scary change broke the back of those companies which hire the best talent from abroad. The situation had become such that out of fear, some tech companies started hastily recalling their employees from America even before the clarification from the authorities. Court documents made a shocking revelation that these exorbitant fees led to a sharp decline in visa applications; The situation was such that till February 15, US Citizenship and Immigration Services (USCIS) had received only 85 payments of this huge fee.
That suspense in the courtroom: Why did Judge Sorokin say – ‘This is illegal’?
This legal battle began when 20 Democratic state attorneys general united and approached the court against this policy. The suspense in the courtroom ended when Judge Sorokin rejected the Trump administration’s arguments defending the order. In his landmark ruling, the judge wrote scathingly: “The Court finds that this policy imposes a tax on H-1B applications without the authority required by Congress. The Defendants (the Administration) have no such legal authority.”
Under US law, any new visa fees are either set by Congress or implemented with public consultation through a lengthy regulatory process. The Trump government had ignored all these rules, due to which the court canceled this condition with immediate effect in the entire country under the Administrative Procedure Act.
That secret conversation of Jaishankar-Rubio and the real truth of ‘migration crisis’
This fee increase had given sleepless nights to the Government of India and the IT sector. Amidst suspense and diplomatic tension, in the month of May, India’s Foreign Minister S. Jaishankar had strongly raised this sensitive issue with US Secretary of State Marco Rubio. At that time, Rubio had admitted that this period of change was creating “some difficulties” and “conflicts”, but he had clarified that this system was not to target India. Highlighting Washington’s fears, Rubio said that America is currently facing a severe ‘migration crisis’, where more than 20 million people have entered the country illegally in the last few years, and the government had to take tough measures to deal with this challenge.
End of lottery system and ban on duplicate entries: what’s next?
Even though the $100,000 fee has been repealed, the world of H-1B visas will never be the same. The US Department of Homeland Security has already scrapped the old random lottery system of visa selection, replacing it with a ‘salary-based model’ that favors qualified applicants with higher salaries. This new merit-based system is scheduled to come into effect from February 27, 2026. Additionally, another major suspense has been removed to prevent manipulation of the system – now if a company files multiple petitions (duplicate entries) for the same person to increase the chances of selection, it will be directly considered as ‘fraud’. The competition for the 65,000 regular and 20,000 advanced degree visas available every year is going to get tougher, but this decision of Judge Sorokin has given a new lease of life to the careers of millions of tech professionals.