US judge nixes Donald Trump's $100k H-1B fee

A U.S. district judge has invalidated a Trump administration rule that imposed a $100,000 annual fee on employers for each H-1B visa holder. The rule, which was challenged by several tech companies and industry groups, required companies with a high percentage of H-1B workers to pay the additional fee.

Judge Tanya Chutkan of the District of Columbia ruled that the Department of Homeland Security exceeded its authority in implementing the fee without proper statutory basis. The fee was intended to fund grants for training American workers, but the judge found it was not authorized under existing immigration laws.

The ruling is a victory for companies that rely on H-1B visas to hire skilled foreign workers, particularly in the technology sector. The fee was seen as a barrier to hiring international talent and was opposed by major firms such as Google, Microsoft, and Amazon.

The Trump administration had argued that the fee would encourage companies to hire American workers instead of foreign ones. However, the judge concluded that the rule was arbitrary and capricious, and that the government failed to provide a reasoned explanation for the fee's structure.

The decision is effective immediately, meaning employers are no longer required to pay the $100,000 fee for H-1B workers. The Department of Homeland Security may appeal the ruling.