Bad news Indian tech talent and IT companies as US judge clears Trump’s $100,000 H-1B visa fee, says ‘fits with goal of reducing…’

A US federal judge has allowed the Trump administration to go ahead with a plan to charge a USD 100,000 fee for new H-1B visa applications. This is a setback for US technology firms and other companies that depend on skilled foreign workers. US District Judge Beryl Howell ruled that President Doland Trump had the legal power to order such a big increase in the visa fee. She said the move fits with the administration’s goal of reducing immigration and encouraging companies to hire more American workers.

The judge said the fee can be enforced even while court cases against it are still ongoing. The US Chamber of Commerce, which filed a lawsuit to stop the fee, now has the option to appeal the decision.

Judge Howell, who was appointed by former Democratic President Barack Obama, rejected the Chamber’s claim that Trump overstepped his authority. She said Congress has given the president wide powers to act when he believes an issue affects the economy or national security.

The Chamber of Commerce argued that the sharp fee hike breaks existing immigration laws and goes beyond what Congress allows when it comes to setting visa fees.

Apart from this case, 19 state attorneys general have also filed a separate lawsuit against Trump’s order. They say the higher fee could badly affect public services, especially health care and education, which also rely on H-1B workers. In addition, a global nurse staffing company has filed its own legal challenge.

Because these cases are still being heard, there is still a chance that the Trump administration’s order could be stopped later.

The H-1B visa programme allows US companies to hire foreign workers for skilled jobs, especially in technology, engineering and health care. Every year, the US gives out 65,000 H-1B visas, along with 20,000 extra visas for people who have higher education degrees. Until now, the total visa fees usually cost employers between USD 2,000 and USD 5,000.

However, this court ruling does not end the legal battle. Several other cases against the new fee are still going on. These include lawsuits filed by Democratic-led states, labour unions, and a global nurse staffing company.

Another judge could still stop the policy in the coming months. Many legal experts believe the issue will eventually reach the US Supreme Court for a final decision.

Trump admin ends H-1B visa lottery system

The Trump administration has announced major changes to the H-1B visa system, ending the lottery method that has been used for years.

Under the new plan, H-1B visas will no longer be given out randomly when there are more applications than available slots. Instead, the government will use a weighted system that gives preference to foreign workers with higher skills and better salaries.

This new rule will start on February 26, 2026 and will apply to the 2027 financial year and future years. It will decide how tens of thousands of H-1B visas are granted every year.

The administration says the change is meant to bring in the best global talent by focusing on qualifications and pay, rather than leaving the selection process to chance.