A United States federal judge on Tuesday validated President Donald Trump’s $100,000 fee for processing H1B visa applications, despite acknowledging the policy could “inflict significant harm on American businesses and institutions of higher education.”
In a 56-page ruling, US District Judge Beryl Howell stated that the president possesses “broad statutory authority” to tackle “a problem he perceives to be a matter of economic and national security.”
The $100,000 application fee, announced in September, gave companies a mere 36 hours’ notice before taking effect, sparking widespread confusion over its implementation and scope.
The H1B levy forms part of a broader immigration clampdown by Trump, who has launched an aggressive campaign against migrants since his return to the White House, though this marks the first time the visa programme favoured by Silicon Valley has been targeted.
Trump contended that the H1B visa system was being exploited to displace American workers with foreign nationals willing to accept lower wages.
The United States issues 85,000 H1B visas annually through a lottery system, with India accounting for approximately three quarters of recipients.
Technology entrepreneurs, including Trump’s erstwhile ally Elon Musk, have cautioned against restricting H1B visas, arguing that the United States lacks sufficient domestic talent to fill critical vacancies in the technology sector.
The lawsuit was filed by the US Chamber of Commerce, a pro business lobbying organisation, and the Association of American Universities, which represents 69 American research universities.
The plaintiffs jointly argued that the affected workers “contribute enormously to American productivity, prosperity and innovation.”
The Chamber typically aligns with Republican interests, expending over $76 million on lobbying in 2024 alone and nearly $6 million supporting Republican political groups and candidates through direct contributions, according to OpenSecrets.org.
At least two other lawsuits challenging the $100,000 H1B visa application fee remain pending.