A U.S. federal judge has upheld the Trump administration’s authority to impose a $100,000 fee on new H-1B visa applications, marking a major legal victory for the former president’s immigration agenda. The decision reinforces the executive branch’s broad powers over immigration policy and could significantly reshape how American companies hire skilled foreign workers.
The ruling, delivered by U.S. District Judge Beryl Howell, found that the administration acted within its legal authority under the Immigration and Nationality Act when introducing the new fee through a presidential proclamation. According to the decision, the policy falls “squarely within” the President’s delegated power to regulate the entry of non-citizens into the United States when deemed necessary for national interests.
Court Backs Administration’s Authority on H-1B Reforms
The case was brought by the U.S. Chamber of Commerce, joined by research universities and employer associations, who argued that the fee would undermine Congress’s established framework for the H-1B visa program. They said it would place an excessive burden on U.S. employers, particularly those reliant on global talent in technology, engineering and science.
Judge Howell dismissed the lawsuit, noting that while the debate over the policy’s wisdom was vigorous, it was “not within the province of the courts.” The decision, according to her ruling, rested on the statutory authority granted to the President, rather than on the policy’s economic or social impact. She added that the Supreme Court has long maintained that matters of immigration and foreign policy are “rarely proper subjects for judicial intervention.”
According to Newsweek, the H-1B visa program enables U.S. companies to employ foreign professionals in specialised fields, issuing up to 85,000 visas each fiscal year, with 20,000 reserved for candidates holding advanced degrees. The $100,000 fee applies only to new applications filed after the proclamation’s introduction and excludes current H-1B holders and foreign students already working in the U.S.
The administration argued that the measure was designed to discourage misuse of the visa system and encourage companies to prioritise American workers. A related Department of Homeland Security regulation, finalised this week, will also modify the H-1B lottery system by 2027, favouring applicants with higher earnings in their respective sectors.
Business and Legal Reactions to the Court’s Decision
The ruling sparked strong reactions across the business and immigration sectors. Düden Freeman, a former U.S. diplomat and founder of Visas 101, said the outcome would “make those that hire H-1B employees from overseas rethink that strategy moving forward,” as the new fee primarily targets employers recruiting foreign workers based outside the United States.
Immigration attorney Abhinav Tripathi described the decision as “decisive,” highlighting that Congress had granted the President “extraordinarily broad authority” to impose such conditions. According to Tripathi’s analysis, the ruling underscores that even sweeping policy shifts remain lawful if they align with the President’s statutory discretion.
The Department of Homeland Security confirmed it has opened 175 investigations into firms suspected of abusing the H-1B program to replace or undercut American workers. Supporters of the fee maintain that it will help prevent wage suppression and strengthen labour protections.
Yet, many in the technology sector continue to defend the visa system, saying it remains vital for innovation, competitiveness, and filling highly specialised roles. According to the U.S. Chamber of Commerce, the H-1B workforce contributes significantly to the American economy, particularly in industries facing persistent skill shortages.
