A federal court ruling has cleared the way for the Trump administration to proceed with a sharp increase in H-1B visa application fees, a move that could significantly alter how US companies hire skilled foreign workers.
The decision, delivered on Tuesday, allows a $100,000 charge on new applications, reshaping one of the most widely used employment-based visa programmes.
The outcome marks an important legal win for President Donald Trump, while creating fresh uncertainty for technology firms and other sectors that depend on global talent to fill specialised roles.
Judge backs presidential authority
US District Judge Beryl Howell ruled that the administration acted within the law when it imposed the higher fee.
She found that Congress had already granted the president broad authority to act in areas tied to economic and national security, and that this power covered the proclamation signed in September.
The ruling directly rejected arguments that the fee exceeded presidential authority or conflicted with existing immigration statutes.
According to the court, the proclamation fell squarely within powers delegated by lawmakers, even though it represents a dramatic departure from previous fee levels.
Business challenge rejected
The lawsuit had been brought by the US Chamber of Commerce, which argued in October that the proposed charge would effectively shut businesses out of the programme.
In the lawsuit, the nation’s largest business lobbying group said the proposed fee increase is unlawful, arguing that it conflicts with federal immigration law and goes beyond the fee-setting authority granted by Congress.
Following the ruling, the Chamber said it was reviewing its legal options, including a potential appeal.
The group has consistently warned that such a high fee would make visas unaffordable for many employers, particularly smaller firms that rely on overseas expertise to expand.
Why H-1B visas matter
The H-1B programme allows US employers to hire college-educated foreign workers with specialised skills.
While visas are allocated through a lottery, usage is heavily concentrated in the technology sector.
Companies such as Amazon, Tata Consultancy Services Ltd., Microsoft, Meta Platforms Inc., and Apple Inc. account for some of the highest numbers of approved H-1B workers, based on government data.
The administration has argued that the fee increase is intended to discourage misuse of the programme and to encourage firms to prioritise domestic hiring.
Critics counter that the policy risks creating labour shortages in fields where qualified US workers are already scarce.
More lawsuits still pending
The Chamber’s case is not the only legal challenge facing the policy. A coalition of 19 state attorneys general has filed a separate lawsuit focusing on the expected impact on public services.
Their complaint highlights potential disruptions in healthcare and education, sectors that also depend on H-1B professionals.
In addition, a global nurse-staffing agency has launched its own legal action, underscoring concerns that higher costs could worsen staffing pressures across critical services.
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