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The Federal Court in America has canceled Trump’s policy of charging a fee of $ 1 lakh (about Rs 95 lakh) on H-1B visa. The Boston court said that this is not a fee but a tax and to implement it, the approval of the Parliament and not the President was required.
Trump had announced in September 2025 that companies that employ foreign workers on H-1B visas will have to pay an additional fee of $1 lakh for each visa. After this, the Attorney General of 20 states challenged it. Now the Trump government can appeal against the court’s decision.
H-1B is a non-immigrant visa through which American companies can hire high-skilled professionals from abroad for a short period of time. America issues about 85,000 new H-1B visas every year.
H-1B visa is most used by Indian IT and tech professionals. In such a situation, this decision of the court is being considered as a big relief for Indians.
Trump government said- H-1B is being misused
The Trump government had argued in the court that the H-1B system was being misused. According to the government, many companies were replacing American employees with foreign employees at lower wages. In such a situation, this fee is not a tax but a kind of financial penalty.
The government said that under the immigration law the President has the right to limit the entry of foreign citizens. But the court did not agree with this argument.
On September 19, 2025, US President Trump signed an order related to changes in the rules regarding H-1B visas.
Government admitted – applications decreased after fee increase
The increase in fees by the Trump government also affected visa applications. According to US Citizenship and Immigration Services (USCIS) data, there was a 38.5% decline in H-1B registrations for fiscal year 2027. This number decreased from 3.44 lakh to 2.11 lakh.
The US government itself had admitted in the court that after the increase in fees, applications for H-1B visas had decreased rapidly. In March, the administration had said that till February 15, only 85 people had deposited the new fees.
65,000 visas are issued every year under the H-1B program. Apart from this, another 20,000 visas are given for foreign professionals with advanced degrees. This visa is usually approved for 3 to 6 years.
Earlier, for applying for H-1B visa for a foreign employee, companies had to pay a fee of around 2000 to 5000 dollars. The Trump administration had increased it directly to one lakh dollars.
India was most affected
This decision of the Trump government had the biggest impact on India. A large number of Indian IT professionals work in America through H-1B visa. Recruitment of foreign workers had already slowed due to layoffs in the tech sector due to AI and new immigration rules.
Meanwhile, many Indian employees lost their jobs. According to American rules, after losing a job, only 60 days are given for new employment. Many Indians had to return when they could not find jobs.
Jaishankar also raised the issue
External Affairs Minister S Jaishankar had raised this matter with US Secretary of State Marco Rubio in May this year. Rubio admitted that there may be some problems and tensions during the transition to the new immigration system.
However, he said that America is trying to make the immigration system more effective and in the long run all parties will benefit from it. Rubio had also said that this step has not been taken specifically targeting India.
According to him, America has been struggling with the problem of large-scale illegal migration in the last few years. More than 20 million people entered the United States illegally and these changes are being made to deal with that challenge.
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Also read this news related to H-1B visa…
15 thousand Indians laid off in America, no new jobs: Went on H-1B, now in danger of deportation due to Trump’s strict rules
After 15 thousand Indian tech workers lost their jobs in America, they are facing a crisis. Now he is facing the threat of deportation. Actually, all of them had gone to America on H-1B visa, but after the layoff, they have limited time left to find a new job and save their visa status. Read the full news…
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