Trump’s $100,000 H-1B fee blocked again: Relief for Indian IT firms, tech professionals? What we know | Today’s news

A second US federal judge has blocked President Donald Trump’s $100,000 fee for new H-1B visas, providing temporary relief to Indian technology professionals and US companies that rely heavily on the program.

U.S. District Judge Haywood Gilliam of Oakland, California ruled that U.S. Citizenship and Immigration Services (USCIS) and the State Department did not follow required rulemaking procedures before the fee was imposed. The ruling follows a separate ruling by a Boston federal judge in June that also blocked the charges. A federal appeals court subsequently refused to stay that decision.

The latest decision does not permanently waive the $100,000 charge. Instead, it blocks agencies from implementing the fee while the underlying legal challenge continues.

Why the decision is important for Indian IT professionals

This development is particularly significant for Indians, as they represent the largest share of H-1B recipients.

USCIS data shows that people born in India accounted for 283,755, or 71%, of all H-1B petitions approved in fiscal year 2024. China came in second with 46,722 approvals, or 11.7%. For initial employment alone, Indian beneficiaries received 80,449 approvals, or 57% of the total.

This means that any major change in the price or availability of new H-1B visas could have a disproportionate impact on Indian professionals seeking to work in the US.

The immediate implication of Wednesday’s ruling is that the $100,000 fee cannot simply be viewed as an undisputed new cost to employers seeking to sponsor disabled workers while litigation continues. However, the legal status of the fee remains unresolved.

What this means for Indian tech workers

For Indian IT professionals, the decision could ease some of the uncertainty surrounding US job opportunities that require new H-1B sponsorships.

The H-1B program is widely used by technology companies to recruit foreign professionals in specialized occupations. The program provides 65,000 regular visas each fiscal year, plus 20,000 additional visas for those with qualifying advanced U.S. degrees.

The $100,000 fee was a dramatic increase from the typical H-1B fee, which Reuters reported generally ranged from $2,000 to $5,000, depending on the circumstances.

As visa costs are generally borne by employers, the increase could affect companies’ decisions about whether to sponsor overseas workers.

Therefore, the latest ruling removes, at least for now, one major cost uncertainty for employers considering new H-1B hires. However, it does not guarantee that an individual Indian applicant will receive an H-1B visa.

American technology companies are also getting temporary relief

The decision is important for US technology companies because the H-1B program is the main channel through which they recruit specialized foreign talent.

A $100,000 fee could significantly change the economics of sponsoring a new worker, especially for employers who sponsor large numbers of employees. The court’s ruling means companies challenging the fee have another legal decision to support their argument that the administration failed to follow the required rulemaking process.

The U.S. Chamber of Commerce separately challenged the charge, while a coalition of unions, employers and nonprofits presented the case to Judge Gilliam.

However, for the companies, the latest ruling should be seen as a temporary legal relief rather than a final decision. A lawsuit over Trump’s authority to impose the fee remains active.

The $103,000 permanent charge could create another battle

Another important factor is the administration’s separate effort to establish a permanent H-1B fee of about $103,000.

The Department of Homeland Security decided to accept the allegation in August. If completed, it is expected to face another round of legal challenges. Reuters noted that the cases would involve legal issues other than the litigation surrounding Trump’s existing $100,000 fee.

In other words, Wednesday’s ruling doesn’t necessarily resolve the broader question of whether the six-figure H-1B bill could eventually become part of the U.S. immigration system.

Read also | H-1B rules continue to tighten, with new fees and stricter checks for workers

What will happen to existing H-1B holders?

The last case concerns the new H-1B fee, rather than the termination of the H-1B program itself.

Thus, for Indian professionals already in H-1B status, the decision itself does not change the basic validity of their existing visas. The H-1B program continues to allow US employers to temporarily employ foreign professionals in specialized occupations.

A more immediate concern is the costs and conditions associated with new H-1B applications and sponsorships.

The Trump administration is still pursuing H-1B changes

The administration has defended the fee as part of a broader effort to reshape the H-1B program.

Trump said the program was being abused by companies replacing American workers with cheaper foreign labor. His administration also instituted enhanced screening of H-1B applicants and proposed a selection system that would favor more skilled and better-paid workers.

Trump recently extended the $100,000 fee for another year after it was set to expire on September 21.

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