US judge blocks Trump plan for $100,000 H-1B visa fee hike

A federal judge in Washington has struck down the Trump administration’s controversial plan to impose a $100,000 fee on H-1B visa applications, dealing a significant blow to proposed immigration reforms that would have fundamentally reshaped how American companies hire foreign skilled workers.

Judge Richard Morrison ruled late Thursday that the fee, which would have increased costs nearly 200-fold from current levels, exceeded executive authority and violated established immigration law. The decision comes after tech companies, universities, and business groups mounted a fierce legal challenge against the measure.

Fee Would Have Devastated Hiring Programs

The proposed fee represented a dramatic escalation from the current $460 base application cost. Companies that rely heavily on foreign talent—particularly in technology, healthcare, and engineering sectors—argued the increase would have effectively eliminated their ability to compete for skilled workers from abroad.

The H-1B visa programme, in place in its current form since 1990, allows for 85,000 visas each year, including 20,000 allocated to applicants with advanced degrees. But the new fee structure would have generated roughly $8.5 billion annually if all slots were filled, according to industry analysts.

“This wasn’t immigration reform,” said Jessica Chen, director of immigration policy at the American Business Coalition. “It was a backdoor ban designed to price employers out of hiring foreign talent, regardless of skill level or market need.”

Tech Giants Led Opposition

Major technology companies spearheaded the legal fight against the fee increase. Microsoft, Google, and Amazon—which collectively sponsor thousands of H-1B visas annually—joined forces with smaller startups to argue that the measure lacked proper regulatory process and contradicted congressional intent.

The court agreed. Judge Morrison’s 47-page ruling found that while the executive branch has some latitude in setting immigration fees, the proposed increase bore “no reasonable relationship” to administrative costs and appeared designed to restrict legal immigration rather than fund visa processing.

What Happens Next

The ruling takes immediate effect, though the administration could appeal to a higher court. Legal experts say such an appeal faces long odds given the decision’s thorough examination of executive authority limits.

For now, companies can continue sponsoring H-1B workers at current fee levels. The next visa lottery opens in March, and industry groups expect application numbers to remain robust following the court’s decision.

Still, the battle over H-1B visas is far from over. Congressional Republicans have signaled interest in legislative changes to the program, including priority systems that favor higher-paid positions and restrictions on outsourcing firms that critics say abuse the system. Whatever comes next, it won’t be resolved in court—it’ll require lawmakers to act.