- The Boston-based First Circuit Court of Appeals denied the Trump administration's motion to stay a ruling that struck down the $100,000 fee for H-1B visas, calling it an unlawful tax not authorized by Congress.
- U.S. Senator Tim Sheehy introduced a bill proposing a three-year pause on new H-1B visas, aiming to restart the program under stricter limits and higher standards.
- The proposed legislation, known as the End H-1B Abuse Act, aims to protect American workers and curb H-1B fraud by closing loopholes and strengthening guardrails.
A federal appeals court has ruled against Donald Trump's $100,000 fee for H-1B visa petitions, deeming it an unlawful tax. The First Circuit Court of Appeals upheld a previous ruling that struck down the fee, which was criticized for being a barrier to mid-sized firms.1
In response, Senator Tim Sheehy introduced the End H-1B Abuse Act, proposing a three-year pause on new H-1B visas. The bill aims to implement stricter regulations, including a wage-based selection system and the elimination of the random lottery.23
Sheehy stated, "My legislation restores the programme to its original intent and puts American workers first by closing loopholes that incentivise abuse..." He emphasized the need to protect American workers from being undercut by cheaper foreign labor, asserting that the H-1B program was designed to address workforce shortages, not to displace qualified Americans.
The proposed legislation also seeks to codify the $100,000 fee and eliminate work authorization for foreign students. "The H-1B programme was created to address workforce shortages for specialised, difficult-to-fill positions – not to displace qualified, hardworking Americans..." Sheehy added that the bill is a critical step to curb fraud and address national security risks associated with the program.
Supporters of the bill include the Immigration Accountability Project and the Federation for American Immigration Reform (FAIR).
“The First Circuit Court of Appeals ruled the $100,000 fee an unlawful tax not authorized by Congress. Senator Sheehy's proposed bill would also replace the visa lottery with a wage-based system, ban concurrent employment and third-party staffing, bar federal agencies from sponsoring visa holders, and end work authorization for foreign students.”
