A US District Court has ruled that the Trump administration’s $100,000 fee on new H-1B visa applications is legally valid, dealing a setback to businesses and professionals challenging the move. The decision has prompted the US Chamber of Commerce to file an appeal, taking the matter to the US Appeals Court, according to a Bloomberg report.
The controversial fee was introduced through a presidential proclamation in September as part of former President Donald Trump’s broader push to restrict immigration and curb what he described as misuse of the H-1B visa programme. The programme allows US employers to hire highly skilled foreign professionals and is heavily used by the technology, engineering and healthcare sectors.
In its lawsuit filed in October, the US Chamber of Commerce argued that the sharp hike violated federal immigration law and exceeded the executive branch’s authority. It maintained that only Congress has the power to set such fees and that the proclamation unlawfully bypassed existing statutes. However, US District Judge Beryl Howell rejected these arguments in a ruling on December 23, stating that the president acted within the authority granted under existing law. Notably, Judge Howell is an appointee of former President Barack Obama.
Legal experts say the appeal faces long odds. Bloomberg Intelligence litigation analyst Matthew Schettenhelm noted that even though Judge Howell has previously been critical of the Trump administration, she still upheld the fee, suggesting higher courts are unlikely to overturn the decision. He said this significantly weakens the Chamber’s chances at the appellate level or even before the US Supreme Court.
The ruling comes at a time when the H-1B programme is already under strain due to new visa rules, including expanded social media scrutiny and restrictions on visa stamping outside an applicant’s home country. These changes have led to major delays in processing, leaving thousands of professionals stranded abroad and employers struggling with staffing gaps.
In addition to the Chamber’s appeal, several other legal challenges are underway. A group of mostly Democratic-led US states has filed a separate case in Massachusetts, while a nurse staffing firm and labour unions have launched a lawsuit in California. Legal analysts believe the issue is likely to reach the Supreme Court given its broad implications for immigration policy and workforce availability.
Critics argue that the steep fee increase could hurt key sectors such as healthcare and education, which rely heavily on foreign professionals. They warn that higher costs could worsen shortages of doctors, nurses and teachers, particularly in states already facing staffing crises.
