A federal judge in the United States has upheld President Donald Trump’s decision to impose a $100,000 fee for processing H-1B visa applications, despite acknowledging that the policy could cause serious disruption to American businesses and universities.
In a 56-page ruling delivered on Tuesday, US District Judge Beryl Howell said the president acted within his legal powers, noting that he has “broad statutory authority” to respond to what he considers economic and national security concerns.
The fee, announced in September, was implemented with just 36 hours’ notice, a move that sparked widespread confusion among employers over its scope, enforcement and financial impact. The sudden rollout led to uncertainty across industries that depend heavily on skilled foreign workers.
The H-1B fee forms part of a wider immigration clampdown introduced by Trump since his return to the White House. While the administration has pursued aggressive measures against migrants, the new fee marked the first major action directly affecting the H-1B visa programme, a key source of talent for the US technology sector.
Trump has argued that the H-1B system is frequently misused by companies to replace American workers with cheaper foreign labour. The programme allows the US to issue 85,000 H-1B visas annually through a lottery system, with Indian nationals accounting for roughly 75 percent of recipients.
The policy has drawn criticism from technology leaders and entrepreneurs, including Trump’s former ally Elon Musk, who have warned that restricting H-1B visas could worsen labour shortages in critical areas of the tech industry. They argue that the domestic workforce alone cannot meet current demand for specialised skills.
The legal challenge to the fee was filed by the US Chamber of Commerce and the Association of American Universities, which represents 69 research universities across the country. The plaintiffs told the court that H-1B workers play a vital role in driving American innovation, productivity and economic growth.
The US Chamber of Commerce, traditionally aligned with Republican interests, spent more than $76 million on lobbying in 2024 and nearly $6 million on direct contributions to Republican candidates and political groups, according to data from OpenSecrets.org.
Despite the ruling, legal opposition to the policy continues, with at least two other lawsuits challenging the $100,000 H-1B visa application fee still pending in court.
