Federal Court Upholds Trump Administration’s $100,000 H-1B Visa Fee Over U.S. Chamber of Commerce Challenge

Posted on Jan 2, 2026 by Chris Prescott

In a significant legal development affecting U.S. immigration policy and employer hiring strategies, a federal district court in Washington, D.C. has upheld the Trump administration’s controversial $100,000 fee on certain H-1B visa petitions, rejecting a legal challenge brought by the U.S. Chamber of Commerce. The business lobby has since filed an appeal and continues to contest the policy.

What is the $100k fee?

On September 19, 2025, President Donald Trump issued a presidential proclamation dramatically increasing the cost associated with filing new H-1B visa petitions, imposing a one-time fee of $100,000 on employers who file H-1B petitions for foreign workers who require visa issuance or consular processing outside the United States.  For further details, click here.

U.S. Chamber of Commerce Challenge

Shortly after the fee was announced, the U.S. Chamber of Commerce filed a lawsuit in the U.S. District Court for the District of Columbia challenging the legality of the presidential proclamation and associated fee requirements. The Chamber argued that:

  • The president lacks statutory authority to impose such a substantial fee outside the fee-setting authority explicitly granted by Congress;
  • The fee effectively rewrites the statutory H-1B program, which Congress designed with specific conditions and limitations; and
  • The administration violated the Administrative Procedure Act (APA) by issuing the policy without formal notice-and-comment rulemaking typically required for changes to visa fee structures.
A professional legal update graphic from PSBP Law announcing an H-1B visa update, highlighting that a federal court upheld a $100,000 fee on certain H-1B visas despite a U.S. Chamber of Commerce challenge. The image features a blue corporate background, an overhead view of business professionals in white shirts gathered around a table holding pencils, and PSBP Law branding with contact information for a law partner, emphasizing immigration law, compliance, and employer impact.
U.S. Chamber of Commerce Statement on Decision

Following the decision the U.S. Chamber Of Commerce issued the following decision:

“The $100,000 fee makes H-1B visas cost prohibitive for businesses, especially small- and medium-sized businesses that can least afford it. 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: to enable American businesses of all sizes to access the global talent they need to grow their operations.”

District Court Decision

On December 23, 2025, a federal district court ruled against the Chamber’s challenge, finding that the presidential proclamation and the associated $100,000 fee fall within the broad authority granted to the president under Section 212(f) of the Immigration and Nationality Act (INA) to restrict the entry of noncitizens when deemed in the national interest. The court held that the fee requirement was a lawful exercise of executive authority and did not exceed the president’s statutory powers.

Conclusion

This surprising decision, while disappointing, means the fee remains in effect, and employers subject to the policy must comply with the fee requirement when filing eligible H-1B petition types unless an exception applies or further court action alters enforcement.

Other legal challenges to the fee are still pending.  We will report further developments as they arise.  In the meantime, if you have questions about the above, please do not hesitate to contact Chris Prescott, PSBP Law Partner at cprescott@psbplaw.com.