WASHINGTON, D.C. — A US federal judge on Tuesday upheld President Donald Trump’s $100,000 fee for processing H-1B visas, ruling that the move falls within the president’s statutory authority despite concerns about its economic impact.
In a 56-page ruling, US District Judge Beryl Howell noted that while the fee could “inflict significant harm on American businesses and institutions of higher education,” Trump has broad authority to act on matters he perceives as affecting economic and national security.
Sudden Fee Sparks Confusion
The unprecedented fee, announced in September 2025, took effect just 36 hours after notice, creating confusion across Silicon Valley and US universities. Companies scrambled to determine who would be affected, while HR departments struggled to navigate the sudden policy change.
Trump defended the measure as necessary to prevent H-1B visa abuse, arguing that foreign workers were sometimes being hired to replace American employees at lower wages. The H-1B visa program, which issues 85,000 visas annually, is heavily utilized by tech companies and research institutions, with India alone accounting for roughly three-quarters of recipients.
Industry Pushback
Tech leaders and entrepreneurs, including Elon Musk, voiced concerns that the new fee could harm innovation. Critics argue that the US lacks enough homegrown tech talent to fill specialized roles, and restricting H-1B access could slow growth in critical sectors like artificial intelligence, cybersecurity, and software engineering.
The lawsuit challenging the fee was filed by the US Chamber of Commerce and the Association of American Universities (AAU), representing 69 research institutions. The groups argued that H-1B workers “contribute enormously to American productivity, prosperity, and innovation.”
Despite the Chamber’s typically Republican-leaning support, which included more than $76 million in lobbying in 2024 and direct contributions to GOP campaigns, the court ruled in favor of the Trump administration.
Legal Landscape Moving Forward
While Judge Howell upheld the fee, at least two additional lawsuits challenging the H-1B fee remain pending. Companies and universities continue to monitor the situation closely, warning that the high cost could disrupt hiring and research initiatives.
The Trump administration’s immigration crackdown has targeted multiple avenues, from visas to broader migration policies, signaling a continued push to tighten foreign labor access across the US economy.
