US District Judge Beryl ​Howell said President Trump had Adequately Backed up His Claim that the H-1B Program was Displacing Domestic Workers

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A US federal judge has upheld Donald Trump’s controversial $100,000 H-1B visa fee, rejecting a challenge from business groups. It can potentially reshape tech hiring strategies across the US.

Earlier this year, Trump signed a proclamation imposing a $100,000 annual H-1B visa fee on highly skilled workers.

Court Greenlights Trump’s $100K H-1B Visa Fee

A federal judge on Tuesday (December 23, 2025) rejected a challenge by the largest US business lobby group to President Donald Trump's $100,000 fee on new H-1B visas for highly skilled foreign workers.

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The court said: “It's a policy decision and falls under his broad powers to regulate immigration.” 

US District Judge Beryl Howell in Washington, DC, rejected arguments by the US Chamber of Commerce that the fee conflicts with federal immigration law and will lead many companies, hospitals, and other employers to cut jobs and the services they provide to the public.

"The parties’ vigorous debate over the ultimate wisdom of this political judgment is not within the province of the courts," Howell wrote. "So long as the actions dictated by the policy decision and articulated in the Proclamation fit within the confines of the law, the Proclamation must be upheld." 

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Response from the Business Group

The Chamber’s executive vice-president and chief counsel, Daryl Joseffer, said many small and medium-sized businesses will be unable to afford the fee. 

“We are disappointed in the court’s decision and are considering ‌further legal options to ensure that the H-1B visa program can ‌operate as Congress intended,” Mr. Joseffer said in a statement.

H-1B Visa: The ‘Trump’ Card

The H-1B is a temporary visa category for high-skilled foreign nationals, including Indians, as it's typically the only practical way for them to work in America long-term before eventually gaining permanent residence (a green card). 

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Created by the 1990 Immigration Act, H-1B visas are meant to allow American companies to bring in people with technical skills that are hard to find in the United States. 

The visas are not intended for people who want to stay permanently. At least 60 per cent of the H-1B visas approved since 2012 have been for computer-related jobs, according to the Pew Research Centre. But hospitals, banks, universities and a wide range of other employers can also apply for H-1B visas.

This year, Amazon was by far the top recipient, with more than 10,000 visas approved, followed by Tata Consultancy Services, Microsoft, Apple, and Google. California has the highest concentration of H-1B workers.

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Replacement of Lottery System for H-1B Visa 

The Department of Homeland Security announced its decision to scrap the longstanding lottery system for H-1B work visas. The lottery system will now be replaced with a new approach that prioritises skilled, higher-paid foreign workers. 

The press release also announced that the new rule is “in line with other key changes the administration has made, such as the Presidential Proclamation that requires employers to pay an additional $100,000 per visa as a condition of eligibility.”

The new system will “implement a weighted selection process that will increase the probability that H-1B visas are allocated to higher-skilled and higher-paid” foreign workers, according to an official press release. 

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It will become effective on February 27, 2026, and will apply to the upcoming H-1B cap registration season.

Final Thoughts

Since the beginning of the second term as the President of the US, Trump has announced a wide range of immigration crackdowns, including moves to limit legal immigration. The hike in the H-1B visa fees represents his significant effort to rework temporary employment visas, while expanding the American workforce in domestic organizations. 

All eyes are on how employers can use the permit and qualify foreign workers amidst immigration restrictions.

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