Washington: A US federal appeals court has refused to stay a lower court order striking down the Trump administration's decision to impose a US$ 100,000 fee on H-1B visas for highly skilled foreign workers.

According to a PTI report, the three-judge bench at the Boston-based First Circuit Court of Appeals denied the federal government's motion to stay US District Judge Leo T Sorokin's June 8 ruling that struck down the fee, terming it an unlawful tax not authorised by Congress.

"...we deny the defendants' motion to stay pending appeal to this Court, the district court's June 8, 2026, Memorandum and Order and accompanying Judgment,” the bench ruled on Friday.

The judges agreed with the plaintiffs -- 20 Democrat-ruled states -- that "the question here is not whether Congress may delegate the authority in question. It is whether Congress has done so".

President Donald Trump had issued a proclamation in September last year imposing a US$ 100,000 fee for obtaining new H-1B visas.

The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. American technology companies depend on it to hire tens of thousands of employees each year from countries like India and China.

Citing a 1989 US Supreme Court ruling, the appeals court said the executive must show that Congress had spoken "clearly" in conferring discretionary authority to impose financial burdens, whether described as "fees" or "taxes".

"However, the Trump administration has not explained why that clear standard isn't required in this case," the order said.

The court also said the administration had failed to show why the plaintiff states would not suffer substantial injury if the stay was denied.

The defendants "cursorily assert that the plaintiffs would face 'minimal' harm without developing that argument - if it does constitute an argument as to the plaintiffs' lack of substantial injury - further," the order said.

The US issues 65,000 H-1B visas annually, along with an additional 20,000 visas for foreign workers holding advanced educational qualifications. These visas usually cost between US$ 2,000 and US$ 5,000 in fees.