Last week's ruling by the US Supreme Court striking down President Donald Trump’s global tariff order could have far-reaching consequences beyond trade policy. Legal experts say the judgment has significantly strengthened challenges to the administration’s controversial $1,00,000 H-1B visa fee — a move closely watched by Indian IT firms and professionals.
The verdict held that the US Constitution vests taxation powers in Congress, not the executive branch. In effect, the court underscored that any revenue-raising measure must have clear legislative backing, even when framed under foreign policy or national interest grounds.
Business groups, including the US Chamber of Commerce, have argued that the $1,00,000 H-1B fee amounts to an unauthorised tax. In fresh filings before the US Court of Appeals for the District of Columbia Circuit, challengers cited the Supreme Court’s February 20 ruling in Learning Resources, Inc. v. Trump to press their case.
They contend that:
The H-1B fee is a revenue-generating measure, not a mere administrative charge
Congress authorised visa fees only to recover processing costs
The executive cannot impose a payment of such magnitude without explicit congressional approval
A lower court had earlier refused to block the fee. The appeals court is now reviewing that decision in Chamber of Commerce v. DHS (No. 25-05473).
Parallel litigation in California has also invoked the “major questions doctrine”, arguing that sweeping financial impositions require clear and specific authorisation from Congress.
In September 2025, Trump issued a presidential proclamation introducing a $1,00,000 application fee for H-1B visas. The administration said the measure aimed to curb overuse of the programme and prioritise hiring of American workers.
The move marked a sharp escalation in restrictions on employment-based immigration and disrupted workforce planning for several US companies, especially in technology, engineering and consulting — sectors that rely heavily on Indian professionals.
For Indian IT majors and mid-cap technology firms, the fee created cost uncertainties and hiring bottlenecks at client locations in the US.
Despite the steep fee, demand for H-1B visas did not immediately collapse. According to the annual report submitted to Congress:
Total petitions rose 7 percent to 456,725 in FY2025, from 427,091 in FY2024
However, approvals fell 17.8 percent to 328,185 — the lowest in five years
First-quarter approvals (October–December 2024) plunged 45 percent year-on-year
The sharp fall in approvals suggests stricter scrutiny and policy tightening alongside the financial barrier.
For India — the largest beneficiary of the H-1B programme — the Supreme Court’s tariff ruling could become a pivotal legal precedent. If courts ultimately strike down the $1,00,000 fee, it would ease cost pressures on US employers and revive smoother hiring of Indian tech talent.
While the case is still under judicial review, the broader constitutional principle laid down by the Supreme Court has opened a new legal front — one that could reshape the future of high-skilled immigration policy in the US.
