H-1B visa fee upheld by federal judge

A federal judge said the Trump administration can move ahead with a $100,000 fee on new H-1B visa applications, providing a setback for U.S. technology companies that rely on hiring skilled foreign workers.

U.S. District Judge Beryl Howell said in a ruling Tuesday that President Trump’s move to radically increase the cost of the popular visa is lawful. The decision provides a boost to the administration’s campaign to restrict immigration and push demand for U.S. workers. The U.S. Chamber of Commerce, which sued to block the proposal, can appeal.

Howell rejected the Chamber’s argument that the president doesn’t have the power to impose the fee, finding that his proclamation was issued under “an express statutory grant of authority to the President.”

“Here, Congress has granted the president broad statutory authority, which he has used to issue the proclamation addressing, in the manner he sees fit, a problem he perceives to be a matter of economic and national security,” she wrote.

Daryl Joseffer, the Chamber’s executive vice president, said in a statement that the $100,000 fee makes H-1B visas cost-prohibitive.

“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: to enable American businesses of all sizes to access the global talent they need to grow their operations,” Joseffer said.

The H-1B visa program is a cornerstone of employment-based immigration, allowing companies in the U.S. to hire college-educated foreign workers for specialized occupations. In September, Trump signed a proclamation to increase the application fee to discourage companies from abusing a program that he claimed displaces U.S. workers.

H-1B visas are awarded based on a lottery system, but are used primarily in the tech industry. Amazon, Tata Consultancy Services Ltd., Microsoft, Meta Platforms Inc. and Apple Inc. are among the companies with the greatest number of H-1B visas, according to the U.S. government.

The Chamber, the nation’s largest business lobbying group, argued in its October lawsuit that raising the fee is unlawful because it overrides federal immigration law and exceeds the fee-setting authority afforded by Congress.

A group of 19 state attorneys general is also challenging Trump’s proclamation. Their lawsuit focuses on the projected impact on the public sector, particularly in the fields of healthcare and education, which also rely on the H-1B visa program. A separate suit was filed by a global nurse-staffing agency.

The case is Chamber of Commerce vs. U.S. Department of Homeland Security, 25-cv-03675, US District Court, District of Columbia (Washington).

Mekelburg writes for Bloomberg.