Key Points
- A federal judge upheld the $100,000 fee for new H-1B visas. The judge ruled that the President has the authority to set the fee.
- The fee aims to encourage companies to hire American workers.
- Smaller companies may be priced out of hiring global talent.
- The government is replacing the visa lottery with a pay-based system.
A federal judge just gave President Trump a major victory in his effort to overhaul the U.S. immigration system. Judge Beryl Howell ruled on Tuesday that the government can proceed with a $100,000 fee for new H-1B visa applications. This decision is a significant blow to tech giants such as Amazon, Google, and Microsoft, which rely heavily on these visas to hire skilled workers from other countries.
The U.S. Chamber of Commerce led the fight against the fee, arguing that the President lacked the legal authority to set such a high price. However, the judge disagreed. She explained that Congress granted the President broad authority to manage issues he considers important for the economy and national security. She stated that Trump acted within his rights to address the issue as he saw fit.
The administration’s goal with this high fee is to make hiring foreign workers much more expensive. Trump believes this will force companies to stop “abusing” the program and instead hire American workers. While a large corporation might still pay $100,000 for a “superstar” engineer or a high-revenue role, small businesses will likely find the cost prohibitive.
Experts believe this change will force many companies to stop seeking global talent, focus solely on domestic workers, or relocate operations to other countries.
The changes don’t stop at the fee. The Department of Homeland Security also announced it will scrap the traditional lottery system for these visas. Instead, the government will prioritize applicants with the highest skills and the highest salaries. This shift hits India particularly hard, as Indian professionals currently hold the largest number of H-1B visas.
While this ruling is a big win for the White House, the legal battle isn’t over. Other lawsuits are still pending in California and Massachusetts. Different judges could still decide to block the fee in the coming months.
Most legal experts expect this dispute to reach the U.S. Supreme Court for a final decision ultimately.
