Setback for US tech firms! Federal judge upholds USD 100,000 H-1b visa fee, calls it ‘Lawful’

In a major setback to US technology companies that depend heavily on skilled foreign professionals, a federal judge on Tuesday upheld the Trump administration’s decision to impose a $100,000 fee on new H-1B visa applications. The ruling is expected to significantly raise hiring costs for employers and could impact the recruitment of international talent in the American tech sector.

According to Bloomberg, US District Judge Beryl Howell, said in a summary ruling that President Donald Trump’s move to radically increase the cost of the popular H-1B visa is lawful. The decision further strengthens the Trump administration’s efforts to curb immigration and encourage greater reliance on US workers. However, the United States Chamber of Commerce, which had filed a lawsuit challenging the proposal, retains the option to appeal the ruling.

Howell dismissed the Chamber’s claim that Trump lacked the authority to impose the fee. The judge ruled that the proclamation was issued under an “express statutory grant of authority to the President.” She wrote that Congress has granted the president broad authority, which he used to address “in the manner he sees fit, a problem he perceives to be a matter of economic and national security.”

Executive vice president of the US Chamber of Commerce, Daryl Joseffer, said the $100,000 fee makes H-1B visas cost-prohibitive. “We are disappointed in the court’s decision and are exploring further legal options to ensure the H-1B visa program functions as Congress intended: allowing American businesses of all sizes to access the global talent they need to grow,” Joseffer stated.

Notably, in its October lawsuit, the Chamber, the nation’s largest business lobbying group, argued that the fee increase is unlawful because it overrides federal immigration law and exceeds the fee-setting authority granted by Congress.

Earlier, on Tuesday, the US Department of Homeland Security announced plans to replace the traditional lottery system for H-1B visa applicants with a weighted selection process. The move aims to address wage arbitrage and encourage American employers to petition for higher-paid, higher-skilled foreign workers. Officials are also considering proposals to implement a wage floor for H-1B visa holders.

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