• Source:JND

A US judge on Tuesday rejected a challenge by the largest US business lobby group to US Presidet Donald Trump's $100,000 fee on new H-1B visas for highly skilled foreign workers, saying it fell under his broad powers to regulate immigration.

US District Judge Beryl Howell in Washington, DC, rejected arguments by the US Chamber of Commerce that the fee conflicts with federal immigration law and will lead many companies, hospitals and other employers to cut jobs and the services they provide to the public.

"Political judgment is not within the province of the courts"

"The parties’ vigorous debate over the ultimate wisdom of this political judgment is not within the province of the courts," Howell wrote. "So long as the actions dictated by the policy decision and articulated in the Proclamation fit within the confines of the law, the Proclamation must be upheld."

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Howell is an appointee of Democratic former President Barack Obama. The White House is yet to respond to the latest development.

What are the impact of H-1B visa feek hike on businesses? 

The Chamber's executive vice president and chief counsel, Daryl Joseffer, said many small and medium-sized businesses will be unable to afford the fee. "We are disappointed in the court’s decision and are considering further legal options to ensure that the H-1B visa program can operate as Congress intended," Joseffer said in a statement.

What is H-1B program?

The H-1B program allows US employers to hire foreign workers with training in specialty fields. Technology companies in particular rely heavily on workers who receive H-1B visas. The program offers 65,000 visas annually, with another 20,000 visas for workers with advanced degrees, approved for three to six years.

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Trump's order would sharply raise the cost of obtaining H-1B visas, which had typically come with about $2,000 to $5,000 in fees depending on various factors.

The Chamber in its lawsuit says the new fee would force businesses that rely on the H-1B program to choose between dramatically increasing their labor costs or hiring fewer highly-skilled foreign workers.

A group of Democratic-led US states and a coalition of employers, nonprofits and religious organizations have also filed lawsuits challenging the fee.

Why is it a major setback for Indians?

1. Major setback for Indian professionals: Indians make up the largest share of H-1B holders; a $100,000 fee sharply reduces access for Indian tech, IT, and STEM workers aiming for US jobs.

2. Hiring freeze risk for Indian talent: US companies, especially mid-sized firms and startups, may avoid sponsoring Indian candidates due to the steep cost.

3. IT services firms hit hardest: Indian IT majors and consultancies that rely on H-1B visas for onsite deployment could face higher costs and reduced US presence.

4. Career mobility takes a hit: Fewer opportunities for Indian professionals to move from India to the US, slowing career growth and global exposure.

5. Push towards alternative destinations: Indian high-skilled workers may increasingly look to Canada, Europe, Australia, or the Middle East as US doors narrow.

(With inputs from agency)


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