The Trump administration is, again, trying to impose a $100,000 fee for H1B visas.

 

Reuters. 

The Trump administration is again trying to impose a $100,000 fee for the controversial H1B visas. Reuters. President Trump attempted to impose the fee last year, but a judge ruled it was unconstitutional as the court considered it a tax. The new effort would allow a notice and comment rulemaking demanded by the judge and would be framed as recovering costs for the Department of Homeland Security. 344,000 people were approved for H1B visas so far this year, down dramatically from a peak in 2023 with 794,000 visas sought. It is unclear if the new rule will survive lawsuits. 

My Comment:

I still say that the entire H1B visa program should be scrapped. I don't believe that any of the jobs that are held by H1B visa holders are so impossible to staff that an American couldn't be found to work them. Indeed, in many cases, Americans would love to work those jobs, especially in the tech sector. And in the few cases that there aren't we could use the other visa programs, like the O-1A, O-1B and EB-1A visas. 

But this is probably the only way we are going to get any reform on this issue, unfortunately. In theory, this would cut down the most excessive abuses in the H1B program, you wouldn't see jobs like a gas station cashier or hotel worker going to H1B visa holders. $100,000 is not chump change and would ensure that the employers couldn't staff these jobs with foreigners. 

The problem is that it's unclear what the courts are going to say. Congress does have jurisdiction over taxation. Is this new effort a tax? I am sure a left wing judge would argue so, but I would say no. The Federal government is allowed to collect fees and doing so with these visas would at least help fund immigration. But who knows what the courts will do?

What is frustrating is that the Democrats effort at lawfare have been effective. I don't really think it matters too much if the rule is just or now, the Democrats will judge shop until they find another one that will rule this new effort unconstitutional as well. And it won't get fixed until it reaches the Supreme Court. 

Regardless, even if this new rule only goes into effect for a few months, anything that reduces the number of H1B visa holders is a good thing. Like I said, these jobs should be going to Americans. There's zero reason for someone from India to take a job that an American would be very happy to have if the wage was fair.