A U.S. district court ruled that President Donald Trump acted within his legal authority in sharply increasing H-1B visa fees, rejecting challenges from business and university groups.
By yourNEWS Media Newsroom
A federal district court ruled Dec. 23 that President Donald Trump has the legal authority to raise the fee for H-1B visas for specialty occupation workers to $100,000, rejecting a lawsuit brought by major business and higher education organizations seeking to block the policy.
U.S. District Judge Beryl Howell issued the ruling in a case brought by the U.S. Chamber of Commerce and the Association of American Universities, declining to halt the fee increase and granting summary judgment in favor of the Trump administration, according to the court’s ruling.
Before the change, H-1B fees ranged from roughly $2,000 to $5,000 depending on employer size. Under the policy now upheld by the court, employers must pay the $100,000 fee before petitions for new H-1B visas are processed.
The H-1B program allows U.S. employers to temporarily hire foreign workers in specialty occupations requiring “the theoretical and practical application of a body of highly specialized knowledge” and at least a bachelor’s degree or equivalent, as defined by U.S. Citizenship and Immigration Services on its program overview. Covered fields include engineering, mathematics, architecture, medicine and health, education, law, and accounting. The program is capped at 65,000 visas annually, with an additional 20,000 reserved for applicants holding advanced degrees from U.S. institutions.
Trump formally imposed the new fee requirement when he signed Proclamation 10973 in September, requiring payment of the $100,000 fee before H-1B petitions are adjudicated. The proclamation cited concerns that widespread abuse of the program had displaced American workers, suppressed wages, and harmed national and economic security, particularly in science, technology, engineering, and mathematics fields.
In their lawsuit, the Chamber of Commerce and the Association of American Universities argued that the proclamation exceeded the authority of the Departments of Homeland Security and State and violated the Administrative Procedure Act. They contended that H-1B workers contribute significantly to U.S. productivity, innovation, and competitiveness, and help address labor shortages in universities, hospitals, manufacturing, and STEM industries.
Howell rejected those arguments, writing that the administration had the stronger legal position. She said the proclamation rests on “a straightforward reading of congressional statutes” granting the president broad authority to regulate entry into the United States for immigrants and nonimmigrants alike. The judge also ruled that the implementation of the policy did not violate the Administrative Procedure Act.
While acknowledging the economic contributions of H-1B workers highlighted by the plaintiffs, Howell emphasized that those policy considerations were not at issue in the case. Citing Supreme Court precedent, she wrote that matters of economic and foreign policy are generally entrusted to the political branches and are rarely appropriate subjects for judicial intervention.
The court ruling came the same day the Department of Homeland Security announced changes to the H-1B selection system. Beginning Feb. 27, 2026, DHS will replace the random lottery with a weighted selection process designed to prioritize higher-skilled and higher-paid foreign workers. In a DHS statement, officials said the current lottery system allowed employers to flood the pool with lower-wage applicants, disadvantaging American workers.
Together, the court’s decision and DHS’s procedural changes mark a significant shift in federal oversight of the H-1B program, reinforcing the Trump administration’s stated objective of curbing abuse of the visa system and prioritizing U.S. labor interests.
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