A US federal judge has upheld the Donald Trump administration’s decision to impose a $100,000 fee on new H-1B visa applications, a ruling that could significantly affect American technology firms reliant on skilled foreign workers.
In a summary judgment on Tuesday, US District Judge Beryl Howell ruled that the sharp increase in the cost of the popular work visa is lawful, Bloomberg reported. The decision supports the Trump administration’s broader push to curb immigration and prioritise US workers.
The US Chamber of Commerce, which brought the legal challenge, can appeal the ruling.
Rejecting the Chamber’s argument that the president lacked authority to impose such a fee, Howell found that Trump acted under “an express statutory grant of authority to the President.” She said Congress had given the president wide-ranging powers to address what he views as economic and national security concerns “in the manner he sees fit.”
The Chamber had argued that the fee increase overrides federal immigration law and exceeds the limits set by Congress on visa-related charges. Its executive vice president, Daryl Joseffer, warned that the new fee would make the H-1B programme financially unviable for many employers.
“We are disappointed in the court’s decision and are considering further legal options to ensure that the H-1B visa program can operate as Congress intended: to enable American businesses of all sizes to access the global talent they need to grow their operations,” Joseffer said.
The Chamber is not alone in opposing the policy. A coalition of 19 state attorneys general has filed a separate lawsuit, arguing that the measure would harm public-sector employers, particularly in healthcare and education, which also depend heavily on H-1B workers. A global nurse-staffing agency has also launched a legal challenge, meaning the proclamation could still be blocked by other courts.
Growing uncertainty over H-1B visas
Adding to the uncertainty, the US Department of Homeland Security said on Tuesday that it plans to replace the H-1B lottery system with a weighted selection process. The aim, the department said, is to curb wage arbitrage and encourage employers “to petition for higher-paid, higher-skilled foreign workers”. Proposals to introduce a mandatory wage floor are also under consideration.
The H-1B visa programme is a central pillar of employment-based immigration in the US, allowing companies to recruit college-educated foreign professionals for specialised roles. Trump signed the proclamation raising the application fee in September, arguing that some companies misuse the programme in ways that displace American workers.
The ruling has particularly serious implications for India, whose nationals are the largest recipients of H-1B visas. Indian IT firms face sharply higher costs for thousands of employees, while continued policy unpredictability has unsettled Indian professionals working across US technology, finance, healthcare and other sectors. Concerns have intensified following the recent mass postponement of work visa appointments.
