A United States federal court has upheld President Donald Trump’s decision to impose a $100,000 processing fee on H-1B visa applications, despite warnings that the policy could hurt American businesses and universities.
In a ruling delivered on Tuesday, US District Judge Beryl Howell affirmed the legality of the controversial fee, saying the president acted within his powers.
In her 56-page judgment, Howell noted that Trump has “broad statutory authority” to respond to issues he considers threats to the nation’s economy and security.
The judge acknowledged the concerns raised by critics of the policy, writing that the fee could “inflict significant harm on American businesses and institutions of higher education,” but concluded that this alone was not enough to invalidate the president’s action.
The $100,000 fee, announced in September, took effect with just 36 hours’ notice, triggering confusion among companies that depend on the H-1B visa programme, particularly in the technology sector.
The fee forms part of a wider immigration clampdown introduced by Trump since his return to the White House.
While the administration has intensified measures against undocumented migrants, the H-1B visa, heavily relied upon by Silicon Valley, had largely been spared until now.
Defending the policy, Trump argued that the H-1B programme was being misused. He has repeatedly claimed it allows employers to replace American workers with foreign labour willing to accept lower wages.
The United States issues 85,000 H-1B visas annually through a lottery system, with India accounting for nearly three-quarters of successful applicants.
Several technology leaders have criticised the move.
Some entrepreneurs, including Trump’s former ally Elon Musk, warned that restricting H-1B visas could worsen talent shortages. They argue that the US lacks enough locally trained professionals to fill critical roles in the tech industry.
The legal challenge was filed by the US Chamber of Commerce and the Association of American Universities, which represents 69 research universities. In court filings, the groups said H-1B workers “contribute enormously to American productivity, prosperity and innovation.”
Although typically aligned with Republican policies, the Chamber of Commerce opposed the fee, highlighting its potential economic impact. Data from OpenSecrets.org shows the organisation spent over $76 million on lobbying in 2024 and nearly $6 million supporting Republican candidates and groups.
While the ruling allows the fee to remain in place, at least two other lawsuits challenging the $100,000 H-1B application charge are still pending in US courts.
