A U.S. federal judge has upheld the Trump administration’s policy requiring a $100,000 fee on new H-1B work-visa applications, allowing the controversial immigration cost to move forward despite legal challenges from business groups and several states. The decision affirms that the administration can impose the substantial charge on certain foreign workers and employers as part of a broader effort to tighten high-skilled immigration rules.

Under the policy — introduced in September 2025 through a presidential proclamation — companies sponsoring new H-1B hires must pay a one-time $100,000 fee in addition to regular application costs. The charge applies to visa petitions for foreign workers outside the United States, although it does not apply to visa renewals for those already holding an H-1B. Exceptions may be granted if the hire is deemed in the U.S. national interest.

The judge’s ruling came as part of a challenge led by the U.S. Chamber of Commerce and other business groups, who argued that the fee exceeds federal authority and undermines the established immigration framework. Critics — including some states and industry associations — warned that the high cost could make it prohibitively expensive for employers to recruit skilled foreign labour, especially in sectors like technology, healthcare, and specialized engineering, which have traditionally relied on H-1B talent.

Supporters of the fee, including administration officials, contend that the measure is intended to protect American workers and discourage misuse of the H-1B program by firms hiring lower-paid foreign labour in place of U.S. workers. They argue that prioritizing higher-skilled, higher-paid applicants aligns with the program’s original purpose and addresses concerns about wage suppression.

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Opposition remains strong among many employers and immigrant advocates, who say the fee could discourage global talent from coming to the U.S. and strain innovation and competitiveness. Several states have also filed lawsuits seeking to block the policy, arguing it could harm local economies and critical industries.

The programme itself has a cap of 65,000 regular H-1B visas per year plus 20,000 additional slots for those with U.S. advanced degrees. Beyond the fee, the administration has also moved to overhaul the selection process by replacing the random lottery with a system that prioritizes higher-paid, higher-skill applicants, a change scheduled to take effect in early 2026.

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In practical terms, the ruling means the new fee will stand as H-1B petitions proceed under the updated regime. Employers planning to recruit foreign professionals will need to factor the significant additional cost into their hiring strategies unless future appeals overturn the decision or legislative changes modify the law.