Court Rules Fee Hike for High-Skilled Worker Visas Stands

A U.S. federal judge has dismissed a legal challenge from a major business coalition, allowing a Trump-era rule that imposes a $100,000 fee on certain H-1B visa applications to remain in effect. The decision represents a significant setback for tech companies and other industries reliant on high-skilled foreign talent.

The fee, a dramatic increase from previous levels, applies specifically to H-1B petitions filed by employers with more than 50 employees in the U.S., where over half of those workers hold H-1B or L-1 visa status. The rule was finalized in the final months of the Trump administration, arguing the revenue would fund American worker training programs.

Business Groups Argued Fee Was 'Arbitrary and Capricious'

The coalition, which included prominent technology and business associations, had sued to block the rule. Their lawsuit contended that the Department of Homeland Security overstepped its authority, calling the fee increase "arbitrary and capricious" and an unlawful burden on companies that drive innovation.

In his ruling, the judge found that the government acted within its statutory authority. The court deferred to the agency's rationale that the substantial fee was necessary to generate funds for the "US Worker Training Fund," established to retrain U.S. workers for high-demand fields.

  • The ruling maintains a major financial barrier for firms heavily dependent on the H-1B program.
  • Proponents argue it incentivizes hiring American workers and funds critical training.
  • Critics warn it stifles competitiveness and innovation in key sectors like technology and engineering.

The business groups have not yet indicated if they will appeal the decision. The ruling leaves in place one of the most costly visa fees for employers in the U.S. immigration system.