On December 23, 2025, U.S. District Judge Beryl Howell in Washington, D.C., rejected a legal challenge brought by the U.S. Chamber of Commerce against President Donald Trump's September 2025 proclamation imposing a $100,000 supplemental fee on certain new H-1B visa petitions. The ruling affirms the president's broad authority under federal immigration law to restrict entry and implement such measures, dealing a significant blow to business groups and industries reliant on skilled foreign workers.
Judge Howell, an appointee of former President Barack Obama, wrote in her 56-page decision that the proclamation "rests on a straightforward reading of congressional statutes giving the President broad authority to regulate entry into the United States for immigrants and nonimmigrants alike." She emphasized that "the parties’ vigorous debate over the ultimate wisdom of this political judgment is not within the province of the courts," adding, "So long as the actions dictated by the policy decision and articulated in the Proclamation fit within the confines of the law, the Proclamation must be upheld."
The fee stems from a presidential proclamation signed on September 19, 2025, titled "Restriction on Entry of Certain Nonimmigrant Workers." Effective September 21, 2025, it requires a $100,000 payment for H-1B petitions involving beneficiaries outside the U.S. without a valid prior H-1B visa, aiming to curb perceived abuses of the program and protect American workers. The administration cited examples of companies laying off thousands of U.S. employees while seeking H-1B approvals, arguing the fee would ensure the program attracts only "the best of the best" high-skilled talent.
Prior to this, standard H-1B filing fees ranged from approximately $2,000 to $5,000, including the I-129 petition fee, fraud prevention fee, and optional premium processing. The new $100,000 charge applies as a one-time supplemental payment for qualifying new petitions, not to extensions, changes of status within the U.S., or existing visa holders traveling internationally.
The U.S. Chamber of Commerce, representing millions of businesses, filed the lawsuit in October 2025, contending the fee exceeded presidential authority, violated the Immigration and Nationality Act (INA), and bypassed congressional intent on fee structures. They warned it would disproportionately harm small- and medium-sized businesses, hospitals, universities, and tech firms, potentially leading to job cuts and reduced services.
Daryl Joseffer, the Chamber's executive vice president and chief counsel, responded to the ruling: "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." The Chamber may appeal to the U.S. Court of Appeals for the D.C. Circuit.
Separate challenges persist, including lawsuits from a coalition of 20 Democratic-led states (led by New Jersey) and groups of unions, nonprofits, and religious organizations, alleging violations of the Administrative Procedure Act and undue harm to sectors like healthcare and education.
The H-1B program, established in 1990, allows U.S. employers to hire foreign workers in specialty occupations requiring at least a bachelor's degree, such as engineering, IT, medicine, and science. It is capped at 65,000 visas annually, plus 20,000 for advanced-degree holders, with allocations via lottery when demand exceeds supply. Tech giants like Amazon, Microsoft, and Google historically sponsor the most visas, but the program also supports hospitals, research institutions, and smaller firms.
Trump administration officials defend the fee as part of an "America First" agenda to prioritize domestic workers and raise wages. On the same day as Howell's ruling, the Department of Homeland Security announced a finalized regulation overhauling the H-1B lottery to a weighted system favoring higher-skilled and higher-paid applicants, effective for the FY 2027 cycle starting February 27, 2026.
Critics, including immigration advocates and business leaders, argue the fee effectively prices out many legitimate hires, potentially driving innovation and jobs overseas. Supporters, including some labor groups, praise it for addressing outsourcing and wage suppression.
The ruling coincides with broader Trump immigration reforms, including a new "Gold Card" investor visa pathway and increased prevailing wage requirements for H-1B workers. While the fee has disrupted hiring plans—prompting some companies to pause international recruitment—it has not halted the program entirely, with exemptions preserving pathways for current workers and internal status changes.
Economists and industry analysts predict mixed impacts: reduced H-1B usage in cost-sensitive sectors but limited effects on large corporations able to absorb the cost. New Jersey, ranking high in H-1B approvals, has highlighted potential losses in healthcare and research.
As appeals loom and other lawsuits proceed, the policy's long-term fate remains uncertain. However, Howell's decision strengthens the administration's position, underscoring executive latitude in immigration enforcement absent explicit congressional restrictions.
