Federal Court Upholds $100000 H-1B Fee

On December 23, 2024, U.S. District Judge Beryl Howell dealt a significant blow to employers relying on H-1B visas by dismissing the U.S. Chamber of Commerce’s challenge to the Trump administration’s controversial $100000 H-1B fee.

The Ruling

In Chamber of Commerce v. DHS, Case No. 1:25-cv-03675 (D.D.C.), Judge Howell granted summary judgment in favor of the administration, finding that the fee falls within the President’s broad authority under the Immigration and Nationality Act to restrict entry of noncitizens. The court rejected arguments that the fee—which represents a 20-fold increase over previous costs—conflicts with federal immigration law or exceeds presidential authority.

Judge Howell acknowledged that the policy “exudes deference to the President” and emphasized that courts are not empowered to second-guess the administration’s policy judgments on economic and national security matters, so long as they operate within legal boundaries.

Practical Implications for the $100000 H-1B fee

For employers, this ruling means the $100,000 fee remains in effect for H-1B petitions filed after September 21, 2025, that require consular notification. The decision particularly impacts:

• Small and medium-sized businesses with limited budgets.
• Healthcare facilities in rural areas are recruiting international physicians and nurses.
• Universities and research institutions are hiring specialized faculty.
• Technology companies are dependent on global talent pipelines.

Employers must now factor this substantial cost into hiring decisions or explore alternative visa categories and remote staffing arrangements.

Litigation Continues

While the Chamber’s case has been dismissed, two significant challenges remain pending:

State Coalition Lawsuit: Twenty states led by California Attorney General Rob Bonta and Massachusetts Attorney General Andrea Joy Campbell filed suit in Massachusetts federal court (State of California, et al. v. Kristi Noem, et al., Case No. 1:25-cv-13829, filed December 12, 2025). This coalition argues the fee will devastate public sector employers, particularly in healthcare and education.

Global Nurse Force Lawsuit: Filed in the Northern District of California (Global Nurse Force v. Trump, Case No. 3:25-cv-08454, filed October 3, 2025), this case brings together labor unions, healthcare providers, religious organizations, and educational institutions. Plaintiffs emphasize the fee’s impact on medically underserved communities and critical workforce shortages.

What’s Next?

These pending cases could result in injunctions or modified implementation with little advance notice. The Chamber may also appeal Judge Howell’s decision to the D.C. Circuit Court of Appeals.

Given the rapidly evolving legal landscape and potential for sudden changes, employers should closely monitor developments and evaluate their H-1B strategies on a case-by-case basis.

If you have questions about how the $100,000 H-1B fee affects your organization or need guidance on alternative immigration pathways, contact Gunn-Menefee Immigration Lawyers for a consultation.