US Court Strikes Down Trump’s $100,000 H-1B Fee
Why in the news?
Recently, a federal judge in the US ruled that the $100,000 fee charged by former President Donald Trump for obtaining new H-1B visas was unconstitutional, as it was nothing but an indirect tax, which required congressional approval to be levied.
What is the H-1B Visa Programme?
- The H-1B visa is a non-immigrant work visa issued by the United States.
- It allows US employers to hire foreign workers in speciality occupations requiring at least a bachelor’s degree and Specialised knowledge.
Major Sectors
- Information Technology (IT)
- Engineering, Healthcare
- Finance, Consulting
- Research
Annual H-1B Cap
- General Cap: 65,000 visas annually for most private employers.
- Additional Cap: 20,000 visas reserved for holders of advanced degrees from US institutions.
Cap Exempt Entities
- The following can file H-1B petitions throughout the year: Universities, Non-profit research organisations, and government research institutions.
Conclusion
The judgment by the U.S. Federal Court invalidating the implementation of the H-1B visa fee of $100,000 further underscores the need for such important taxation laws to have their roots in Congress rather than the executive being able to impose them without going through the appropriate legislative process.
