Key Highlights

• A US federal appeals court refused to restore the Trump administration's proposed $100,000 H-1B visa fee.
• The court upheld a lower court ruling that found the fee likely exceeded the administration's legal authority.
• The judges said the government had not shown it was likely to succeed on appeal.
• The fee was introduced as part of the Trump administration's efforts to reshape the H-1B visa programme.
• The decision provides temporary relief for employers that rely on skilled foreign workers, particularly in the technology sector.

Appeals Court Upholds Order Blocking Trump's H-1B Fee

A federal appeals court in the United States has rejected the Trump administration's request to temporarily reinstate a $100,000 fee on new H-1B visas, allowing a lower court order blocking the charge to remain in effect.

The decision was issued by the 1st US Circuit Court of Appeals in Boston, which concluded that the administration had not demonstrated a sufficient likelihood of success in its appeal.

As a result, the administration cannot enforce the controversial fee while the broader legal challenge continues.

Why the Court Rejected the Request

The appeals court reviewed the administration's request to pause a June ruling issued by a federal judge, who found that the fee likely amounted to an unauthorised tax because Congress had not explicitly approved it.

The three-judge panel agreed that the administration had not met the legal standard required to suspend the lower court's order during the appeals process.

The ruling does not decide the final legality of the fee but keeps it blocked until the case is fully resolved.

What Was the $100,000 H-1B Visa Fee?

In September, President Donald Trump announced a dramatic increase in the cost of obtaining certain new H-1B visas.

Before the policy, employers generally paid between $2,000 and $5,000 in government fees for an H-1B petition, depending on the circumstances.

The administration's proposal would have increased that amount to $100,000 for many new H-1B visa applications, making it one of the most significant cost increases in the programme's history.

The higher fee did not apply to foreign nationals already in the United States on student visas who later transitioned to H-1B status—a pathway commonly used by international graduates.

Why the Trump Administration Introduced the Fee

The Trump administration argued that some employers had used the H-1B programme to replace American workers instead of addressing genuine shortages of highly skilled labour.

Announcing the policy, Trump said the programme had been "deliberately exploited to replace, rather than supplement, American workers."

The administration maintained that the higher fee would encourage companies to prioritise hiring US workers while reducing dependence on overseas recruitment.

Why the Decision Matters

The H-1B visa programme is widely used by industries such as technology, engineering, healthcare and finance to recruit highly skilled foreign professionals.

Each fiscal year, the programme offers:

• 65,000 regular H-1B visas
• 20,000 additional visas for applicants holding advanced degrees from US institutions

Most approved H-1B visas are granted for three to six years, allowing employers to hire specialised talent when qualified domestic workers are unavailable.

Business groups have argued that a $100,000 filing fee would significantly increase hiring costs and discourage companies from participating in the programme.

Legal Challenge Continues

The lawsuit challenging the fee was brought by 20 Democratic state attorneys general, who argued that the administration lacked congressional authorization to impose such a substantial charge.

While the appeals court's decision keeps the fee blocked for now, the underlying legal case is still ongoing.

The White House had not publicly commented on the latest ruling at the time of publication.

What It Means for Employers and Visa Applicants

For now, employers seeking new H-1B workers will continue operating under the existing fee structure while the litigation proceeds.

The ruling also provides temporary certainty for companies planning international recruitment and for foreign professionals hoping to work in the United States through the H-1B programme.

Any permanent change to the fee structure will depend on the outcome of the appeal or future legislative action by Congress.

Frequently Asked Questions (FAQs)

What did the US appeals court decide?

The court refused to temporarily restore the Trump administration's proposed $100,000 H-1B visa fee, allowing a lower court order blocking the policy to remain in effect.

Why was the fee blocked?

A federal judge found that the administration likely lacked congressional authority to impose the fee, describing it as an unauthorised tax. The appeals court said the administration had not shown it was likely to prevail on appeal.

What is the H-1B visa programme?

The H-1B programme allows US employers to hire highly skilled foreign professionals in specialised occupations such as technology, engineering, healthcare and finance.

How much are H-1B fees now?

Before the proposed increase, employers typically paid between $2,000 and $5,000 in government fees, depending on the application and employer category. The blocked policy would have raised certain new H-1B fees to $100,000.

Does this ruling permanently strike down the fee?

No. The decision only keeps the fee blocked while the legal challenge continues. The underlying lawsuit has not yet reached a final resolution.

Who filed the lawsuit?

The case was brought by 20 Democratic state attorneys general, who challenged the legality of the fee.