A federal judge has declared a policy from the Trump administration, which required companies to pay $100,000 for H-1B visa petitions, to be an unlawful tax. This decision was made on Monday by Judge Leo T. Sorokin of the Federal District Court for the District of Massachusetts. The ruling nullifies a recent tactic used to restrict legal immigration, focusing on areas where skilled foreign workers are needed.
Judge Sorokin’s 42-page opinion emphasized that the policy infringed on Congress’s power to impose taxes according to the Constitution. He dismissed the Trump administration’s defense that the payment was a ‘regulatory payment,’ stating there was no evidence or legal precedent to support this claim. ‘This is mere ipse dixit,’ Judge Sorokin noted, highlighting the lack of a reasoned argument from the defendants.
Furthermore, Judge Sorokin criticized the lack of formal procedure and public input when the rule was created. The decision comes at a time when many industries that rely on the H-1B visa program face critical labor shortages.
The Trump administration argued that the H-1B program had been misused to replace American workers with lower-paid individuals. The imposed fee was claimed to motivate companies to hire American workers for high-paying roles. However, this justification was not accepted in court.

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