A US federal appeals court on Friday rejected the Trump administration’s request to halt a lower court order blocking the imposition of a USD 100,000 fee on new H-1B visas for highly skilled foreign workers.

The ruling allows a June 8 order by a lower court judge to remain in force while the administration appeals the decision. The fee had been challenged by a coalition of 20 Democratic state attorneys general, who argued that it amounted to an unauthorised tax.

Appeals Court Rejects Administration’s Request

The Boston-based 1st US Circuit Court of Appeals declined to stay the lower court’s ruling, finding that the Trump administration had failed to demonstrate it was likely to succeed in its appeal.

The three-judge panel held that the administration had not shown it acted within its legal authority when imposing the fee.

The judges, all appointed by Democratic presidents, did not rule on the merits of the broader appeal but concluded that the administration had not met the legal standard required to suspend the lower court’s order.

Lower Court Called Fee an Unauthorised Tax

In June, a federal judge struck down the USD 100,000 fee after concluding that it effectively functioned as a tax that Congress had never authorised.

The lawsuit was filed by 20 Democratic state attorneys general, who argued that the administration had exceeded its statutory powers by introducing the charge through executive action.

Fee Introduced to Reshape H-1B Programme

President Donald Trump announced the higher fee through a presidential proclamation issued in September, arguing that the H-1B visa programme had been misused by employers.

At the time, Trump said the programme had been “deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor.”

The H-1B programme allows US employers to hire highly skilled foreign professionals in specialised fields. It issues 65,000 visas annually, along with an additional 20,000 visas for applicants holding advanced degrees.

Before the administration introduced the new fee, employers generally paid between USD 2,000 and USD 5,000 in visa-related charges, depending on various factors.

The USD 100,000 fee did not apply to foreign nationals already in the United States on student visas, a category that accounts for a significant proportion of new H-1B recipients.

Fee Saw Limited Uptake

According to the report, relatively few employers have paid the additional fee since it was introduced.

The White House did not immediately respond to requests for comment following the appeals court’s decision.

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