US Judge Clears Trump’s $100,000 H-1B Visa Fee, Scraps Lottery System In Major Overhaul

Last Updated:December 25, 2025, 07:24 IST

US District Judge Beryl Howell upheld Donald Trump's authority to impose a $100,000 fee on new H-1B visa applications, impacting US tech firms and sparking ongoing legal battles.

US District Judge Beryl Howell upheld Donald Trump's authority to impose a $100,000 fee on new H-1B visa applications, impacting US tech firms and sparking ongoing legal battles.

The Trump administration has been cleared to move ahead with a proposed USD 100,000 fee on new H-1B visa applications, after a federal judge ruled that the president acted within his legal authority, a decision that deals a blow to US technology firms and other industries dependent on skilled foreign labour.

US District Judge Beryl Howell said President Donald Trump was empowered by Congress to impose the steep fee hike as part of his administration’s immigration policy. The ruling strengthens the White House’s broader effort to curb immigration and encourage hiring of US workers.

The decision allows the administration to enforce the fee even as legal challenges continue. The US Chamber of Commerce, which filed the lawsuit seeking to block the move, retains the option to appeal. Howell, an appointee of former Democratic President Barack Obama, rejected the Chamber’s claim that Trump overstepped his authority.

In her ruling, Howell said the proclamation was issued under an “express statutory grant of authority" and noted that Congress has given the president broad discretion when addressing matters linked to economic and national security.

“Congress has given the president broad authority that he used to address, in the manner he sees fit, a problem he perceives to be a matter of economic and national security," Howell wrote, adding that courts are not meant to weigh in on the political wisdom of such decisions as long as they remain within the bounds of the law.

The Chamber warned that the fee would make H-1B visas unaffordable for many employers, particularly smaller businesses. “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," said Daryl Joseffer, the Chamber’s executive vice president and chief counsel, arguing that the programme is vital for US companies seeking global talent.

The H-1B visa program allows employers to hire foreign professionals in specialised fields such as technology, engineering and healthcare. The programme currently issues 65,000 visas annually, along with an additional 20,000 for applicants holding advanced degrees. Until now, related fees generally ranged between $2,000 and $5,000.

The ruling does not bring an end to the legal battle. Several other lawsuits remain pending, including challenges from Democratic-led states, labour unions and a global nurse-staffing agency. Another federal judge could still block the policy, and the dispute is widely expected to reach the US Supreme Court.

Trump revamps H-1B visas, scraps lottery system

Separately, the Trump administration has announced a major overhaul of the H-1B visa selection process, doing away with the long-standing lottery system and replacing it with a weighted model that favours higher-skilled and higher-paid applicants.

The new system will take effect on February 26, 2026, and will apply to the fiscal year 2027 registration cycle and beyond. Under the change, visas will no longer be randomly allocated when demand exceeds the annual cap. Instead, applicants with stronger qualifications and higher wages will be prioritised.

Officials say the revamp is designed to better align the visa programme with US labour market needs while reducing reliance on chance in the selection process.

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