 "Trump wins court backing for $100,000 H-1B fee: Why Indians lose out")
In a setback for Indians seeking to work in the United States and for American technology firms that rely on foreign talent, a federal judge has cleared the way for the Trump administration to impose a $100,000 fee on new H-1B visa applications.
US District Judge Beryl Howell said last week that President Donald Trump’s move to sharply raise the cost of the visa was lawful. The ruling allows the administration to proceed with the fee while legal challenges continue.
Howell rejected arguments from the US Chamber of Commerce that the president lacked authority to impose such a charge. She found that the proclamation was issued under “an express statutory grant of authority to the President.”
“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.
The Chamber of Commerce, which brought the lawsuit, said it was weighing its next steps.
“We are disappointed in the court’s decision and are considering further legal options to ensure that the H-1B visa programme can operate as Congress intended: to enable American businesses of all sizes to access the global talent they need to grow their operations,” said Daryl Joseffer, the Chamber’s executive vice president.
H-1B Visa fee hike Impact of the ruling on Indians:
Prohibitive costs for businesses: The one-time fee of $100,000 per new H-1B petition for workers hired from outside the US is a massive increase from the previous average of $2,000-$5,000. This makes hiring new entry-level or mid-career talent from India economically unviable for many companies, particularly small and mid-sized Indian IT firms operating on thin margins.
Disadvantage for entry-level professionals: The new system, effective for the FY 2027 cap season (starting February 27, 2026), replaces the random lottery with a process that prioritises applicants with higher wages and advanced skills. This change heavily disadvantages young professionals, recent graduates, and those in wage level 1 positions who have historically used the H-1B as a career starter.
Disruption to talent pipeline: Indian nationals have consistently accounted for over 70% of H-1B visas. The new rules disrupt this long-standing talent pipeline, creating uncertainty for thousands of Indian students and professionals aspiring to work in the US.
Why business groups went to court
The Chamber argued in its October lawsuit that the fee increase overrides federal immigration law and exceeds the authority Congress granted for setting visa fees. It said a $100,000 charge would make the programme unworkable for many employers.
Nineteen state attorneys general have filed a separate challenge, focusing on the impact on public services such as healthcare and education, which also depend on H-1B workers. A global nurse-staffing agency has brought its own lawsuit.
The ruling does not affect those cases, meaning other judges could still block the fee. One hearing, in a California case filed by unions and a nurse-staffing firm, is scheduled for February 12 in Oakland. Legal experts expect the dispute to reach the US Supreme Court.
What the H-1B programme does
The H-1B visa is a central part of the US employment-based immigration system. It allows companies to hire college-educated foreign workers for specialised roles.
In September, Trump signed the proclamation raising the fee, saying it would deter abuse of the programme and protect American workers. Trump and Commerce Secretary Howard Lutnick have also spoken publicly about the potential revenue, suggesting it could generate tens of billions of dollars.
Immigration lawyers, however, have warned that a fee of this scale could disrupt hiring and impose heavy costs on the broader economy.
Changes beyond the fee
On the same day as Howell’s ruling, the Department of Homeland Security announced it would end the random lottery used to select H-1B recipients.
Instead, visas will be allocated through a weighted system that favours higher-paid and more senior roles. The department said this would reduce wage arbitrage and encourage employers to sponsor “higher-paid, higher-skilled foreign workers.” Proposals to introduce a wage floor are also under consideration.
H-1B visas are used heavily by the technology sector. Amazon, Tata Consultancy Services, Microsoft, Meta Platforms and Apple are among the largest users, according to US government data.
How hiring decisions may change
Recruiters say the new costs will reshape how companies approach hiring.
“For superstars in highly paid, specialised roles, or for jobs that generate a lot of revenue, organisations will be willing to pay the $100,000 fee,” said Alexis DuFresne, founder of Archer Search Partners.
For more routine roles, the calculus shifts. “If you’re going to search, you’re going to tell the search people, ‘Don’t look globally for me. Look domestically for me,’” she said.
Companies with international offices may also respond by moving jobs overseas. “The firms that it’s going to affect the most are the smaller firms,” DuFresne added.
How tech firms are responding
Large technology companies have been preparing for tighter immigration rules for years.
Alphabet’s Google has told employees it will increase applications for permanent residence next year, according to Business Insider, helping staff move off temporary visas and onto green cards.
Others have publicly backed continued sponsorship. Nvidia chief executive Jensen Huang told staff the company would absorb all H-1B costs, even under the new fee.
“As one of many immigrants at Nvidia, I know that the opportunities we’ve found in America have profoundly shaped our lives,” Huang wrote in an internal note reported by Business Insider. “The miracle of Nvidia — built by all of you, and by brilliant colleagues around the world — would not be possible without immigration.”
Industry pushback grows
Trade bodies representing chipmakers, software firms and retailers have urged the White House to reconsider.
In an October letter to Trump, around a dozen groups warned the fee could choke a critical talent pipeline.
“We ask the administration to work with industry on necessary reforms to the H-1B visa programme without increasing the challenges US employers face in recruiting, training and retaining top talent,” the groups wrote.
Signatories included the Business Software Alliance, SEMI, the National Retail Federation, the Entertainment Software Association and the Information Technology Industry Council. SEMI board members include Intel, Taiwan Semiconductor Manufacturing Co., Samsung Electronics, Applied Materials and KLA.
Hospitals and unions have also entered the legal fight, saying the programme remains essential for staffing shortages, particularly in rural areas.
Impact on Indian professionals
Indians have been the largest beneficiaries of the H-1B programme for years, making the policy shift especially consequential.
Indian IT firms face higher costs for thousands of employees, while professionals in technology, finance and healthcare are dealing with added uncertainty. That anxiety has grown after recent mass postponements of US work-visa appointments.
The case is Chamber of Commerce vs. US Department of Homeland Security, 25-cv-03675, US District Court for the District of Columbia.