A federal judge has cleared the way for the Trump administration to impose a steep $100,000 fee on new H-1B visa applications, delivering a major setback to U.S. technology companies that rely heavily on skilled foreign talent.
In a ruling issued on Tuesday, U.S. District Judge Beryl Howell upheld the administration’s decision to dramatically increase the cost of the H-1B visa, rejecting legal challenges raised by the U.S. Chamber of Commerce. The visa programme is widely used by American technology and engineering firms to hire highly skilled professionals from overseas.
Judge Howell dismissed arguments that the president lacked authority to impose such a fee, citing broad statutory powers granted by Congress. In her order, she noted that the administration acted within its legal mandate to address what it considers economic and national security concerns, marking a significant legal victory for the administration’s restrictive immigration agenda aimed at prioritising American workers.
The ruling deals a blow to business groups, particularly the U.S. Chamber of Commerce, which had warned that such a fee would make the programme unworkable for many employers. While the Chamber retains the option to appeal, it expressed disappointment with the court’s decision. Executive Vice President Daryl Joseffer said the fee renders the H-1B visa “cost-prohibitive” and undermines its original intent of helping U.S. businesses access global talent needed for growth.
Adding to the impact on employers, the U.S. Department of Homeland Security (DHS) announced a major overhaul of the H-1B visa selection process on the same day. For the FY 2027 registration season, DHS plans to implement a wage-based weighted lottery system that prioritises higher-paid and higher-skilled applicants.
According to DHS, the new rule is designed to encourage employers to offer higher wages and to petition for roles requiring advanced skills. The move signals a fundamental shift in how H-1B visas will be allocated, further tightening access for lower-wage and entry-level positions.
Together, the court ruling and policy overhaul mark a significant transformation of the H-1B programme, with far-reaching implications for U.S. employers, foreign professionals, and the global talent pipeline.
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