Federal Court Upholds Trump’s $100,000 H-1B Fee: What Employers and Immigrant Professionals Must Know

Court Decision Signals Broad Authority to Condition Nonimmigrant Entry

On December 23, 2025, U.S. District Judge Beryl A. Howell ruled that President Trump’s imposition of a $100,000 fee on certain new H-1B visa applicants from abroad was lawful under the Immigration and Nationality Act (INA). The decision, issued in U.S. Chamber of Commerce v. Department of Homeland Security, upheld a presidential proclamation that conditions entry for many foreign professionals on an extraordinary additional fee.

Judge Howell rejected the Chamber’s attempt to block the rule, granting summary judgment in favor of the government. The court found that the president’s authority under INA §212(f) permits broad actions to restrict or condition noncitizen entry—including monetary conditions—so long as the entry is deemed potentially detrimental to U.S. interests.

This ruling significantly strengthens the executive branch’s discretion over employment-based immigration and confirms that such entry restrictions are unlikely to be overturned unless Congress intervenes or future administrations repeal them.

What the $100,000 H-1B Fee Actually Does

The fee stems from a September 19, 2025 presidential proclamation, which imposed a $100,000 surcharge on certain H-1B petitions for workers located outside the United States. This payment must accompany the petition to secure a visa appointment and subsequent admission at a U.S. port of entry.

Key elements of the fee:

• Applies to new H-1B hires abroad filing after the effective date

• Does not apply to current H-1B workers already in the U.S.

• Excludes individuals changing status within the U.S. (e.g., F-1 to H-1B)

• Does not affect extensions, amendments, or cap-exempt petitions

Prior to this policy, standard H-1B fees typically ranged between $3,000 and $8,000, depending on the employer’s size and industry. The additional $100,000 payment represents a substantial financial barrier to hiring foreign talent abroad, particularly in startups, small businesses, and nonprofit sectors.

Why the U.S. Chamber Challenged the Policy

The U.S. Chamber of Commerce and the Association of American Universities challenged the fee in court, arguing that:

• The INA already outlines fee structures and caps, leaving no room for unilateral executive financial impositions.

• The fee was not based on actual processing costs, violating principles in the Administrative Procedure Act (APA).

• The administration bypassed proper rulemaking procedures, issuing the policy via proclamation rather than through public notice and comment.

Despite these claims, Judge Howell emphasized the broad scope of presidential discretion to regulate entry under INA §212(f). The court ruled that conditioning entry on a financial payment, even one this significant, fell within that statutory authority.

Immediate Impact on Employers and H-1B Candidates

For U.S. Employers:

Employers intending to sponsor H-1B workers abroad now face several new challenges:

• Revised budgeting: The $100,000 fee significantly increases the cost of hiring from overseas.

• Shift to in-country hiring: Employers are increasingly favoring candidates already in the U.S., such as F-1 OPT participants, to avoid the fee.

• Exploring alternative visas: Categories like O-1, L-1, E-2, and TN are being used more strategically to meet workforce needs.

For H-1B Candidates:

Foreign nationals must now consider:

• Whether to remain in the U.S. (if already here in another status) and pursue a change of status.

• If abroad, whether to pursue other visa types or potentially delay relocation until a cap-exempt opportunity or policy change arises.

• The importance of pre-travel legal consultations to assess whether reentry could trigger the fee obligation.

Wider Legal Landscape: Additional Lawsuits Pending

This case is one of several legal challenges to the $100,000 H-1B fee. A coalition of states led by California and Massachusetts has also filed suit, citing harm to state economies and federal overreach. Additionally, labor unions, nonprofits, and immigrant rights groups are preparing constitutional and statutory challenges that may be decided in different jurisdictions.

However, until an appellate court overturns this decision or a separate injunction is issued, the fee remains fully enforceable and legally binding for affected H-1B petitions.

Strategic Immigration Planning in a Changing Environment

At Spar & Bernstein, we encourage both employers and immigrant professionals to view this decision not as a blockade—but as a call to plan smarter. Presidential authority over immigration entry is currently being interpreted in its broadest form, meaning visa and green card strategies must adapt to this reality.

Key recommendations:

• Start early: Don’t wait until H-1B season. Consult immigration counsel before registration begins to assess cost exposure.

• Pursue change-of-status where possible: Avoid entry-based fees by focusing on candidates already present in the U.S.

• Use cap-exempt channels: Universities, nonprofit research entities, and affiliated organizations are not subject to the H-1B cap or this fee.

• Prepare for long-term sponsorship: Combine H-1B with PERM or NIW-based green card strategies for stability.

• Avoid surprise fees at entry: H-1B visa holders traveling abroad should coordinate with counsel to understand if new fees will apply upon return.

How Spar & Bernstein Can Help You Move Forward

With over 60 years of immigration law experience, Spar & Bernstein attorneys are equipped to guide both employers and skilled workers through this shifting legal terrain.

We can assist with:

• Full legal analysis of H-1B exposure to the $100,000 fee

• Cap-exempt or alternative visa strategy tailored to your industry

• H-1B change of status filings for students and in-country professionals

• Compliance planning and employer advisory services

• Representation in waiver or litigation scenarios, where applicable

This court decision underscores the importance of having a seasoned immigration legal partner on your side. Spar & Bernstein can help you protect your talent pipeline, avoid unnecessary fees, and ensure compliance with evolving U.S. immigration policies.