Judge backs Trump’s USD100,000 H-1B visa fee, brushing aside business fears

WEB DESK: A federal court in the United States has upheld President Donald Trump’s decision to impose a USD100,000 charge on H-1B visa applications, even while acknowledging that the measure could cause serious difficulties for employers and universities.

In a detailed 56-page ruling issued on Tuesday, US District Judge Beryl Howell said the president has wide legal powers to act when he believes an issue affects the country’s economic interests or national security. On that basis, the court declined to block the new fee.

The sharply increased charge, unveiled in September, was implemented with just 36 hours’ notice. The sudden rollout led to widespread uncertainty among companies and institutions over how the policy would be applied and which applicants would be affected.

The fee forms part of a broader hardline immigration agenda pursued by Trump since his return to office. While his policies have largely focused on restricting migration, the H-1B programme — heavily used by US technology firms — had until now avoided direct targeting.

Trump has repeatedly argued that the visa scheme is misused by employers to replace US workers with lower-paid foreign labour. Each year, the United States grants 85,000 H-1B visas through a lottery system, with Indian nationals making up roughly three-quarters of successful applicants.

Leaders in the technology sector, including Elon Musk, a former Trump ally, have warned against undermining the programme, saying the domestic workforce cannot meet demand for highly skilled roles critical to innovation and growth.

The legal challenge was filed by the US Chamber of Commerce and the Association of American Universities, which represents 69 research-focused universities across the country. The groups argued that H-1B workers play a vital role in driving productivity, economic success and technological advancement in the United States.

The Chamber of Commerce, traditionally aligned with Republican causes, spent more than $76 million on lobbying in 2024 and contributed nearly USD6 million to Republican candidates and political organisations, according to data from OpenSecrets.

Despite the ruling, the policy continues to face legal opposition, with at least two other lawsuits challenging the $100,000 H-1B application fee still pending.