US court strikes down $100,000 fee for H-1B skilled worker visa

The court takes the view that the Trump administration thereby intervened in an area that is actually reserved for Congress. Following the court ruling, the government of US President Donald Trump must backtrack on its tightened visa rules.

The ruling was made in response to a lawsuit brought by 20 states governed by Democrats. In addition, in December another federal judge had already ruled against the H-1B fee in a separate proceeding with different plaintiffs; an appeal is currently pending in that case.

Reasoning of the court

Trump had defended the controversial visa rules as a measure to protect domestic workers. The H-1B program had been exploited to replace US workers "durch geringer bezahlte, weniger qualifizierte Kräfte," the president stated.

The fee had come into force after a corresponding decree by Trump in the fall of last year. Companies were given only 36 hours' notice, which further increased the pressure on the affected firms and employees.

Impact on the tech industry

Around three quarters of H-1B visa recipients come from India. This means the rule affects a particular group of skilled workers especially frequently and at the same time has far-reaching consequences for the personnel planning of internationally active US corporations.

The ruling is not final. An appeal can still be filed, which according to US media reports the government also intends to do. Until a final decision is made, the legal situation therefore remains provisionally open.

Next steps in the proceedings

The Republican president has been cracking down hard on migrants since the beginning of his second term. The now-overturned decree on the H-1B fee was part of this line and had triggered fierce reactions both in business and in politics.