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By Matt Cannon
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The U.S. Chamber of Commerce has launched an appeal after a federal court upheld President Donald Trump’s controversial $100,000 application fee for H-1B visas, a pivotal program for technology firms reliant on skilled foreign workers.
The business group filed notice of an appeal on Monday after Barack Obama-appointed Judge Beryl Howell ruled in favor of the administration’s policy last week.
The legal fight over the H-1B visa program, which allows U.S. employers to temporarily hire foreign workers in specialty occupations, moves to the United States Court of Appeals for the District of Columbia Circuit.
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President Trump's September proclamation set the new $100,000 charge, far above prior fees, which prompted the business group to block the move via an injunction on October 16.
Why It Matters
The Trump administration argued that the substantial increase is necessary to protect American jobs and fund border security, while critics—including some business groups, educators and state governments—warned it would stifle innovation, competitiveness, and specialized fields like artificial intelligence, cybersecurity and medicine.
The launch of an appeal suggests business leaders are set on continuing the legal battle, which could ultimately end in the Supreme Court.
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What To Know
The $100,000 fee marks a dramatic shift from previous H-1B application costs, which ranged from $960 to $7,595.
In its October lawsuit, the Chamber of Commerce argued, fewer employers would be able to access highly skilled workers required "to continue to innovate and create American jobs."
"These harms to American businesses will also be a boon to America’s economic rivals, who will surely welcome the talent no longer able to accept work in the United States," the suit said. "That is a competitive edge that foreign employers might never cede back."
It also argued Trump's proclamation was unlawful.
"The President has significant authority over the entry of noncitizens into the United States, but that authority is bounded by statute and cannot directly contradict laws passed by Congress," it said.
Federal government lawyers argued the proclamation is "a lawful exercise of the President’s authority to restrict the admission of aliens."
"For decades companies have exploited the H-1B nonimmigrant worker visa program by importing lower-paid, lower-skilled alien workers—thereby artificially depressing wages and employment opportunities for skilled U.S. citizens," they added.
U.S. District Judge Beryl Howell upheld its legality on December 23, stating in her 56-page decision that "the lawfulness of the Proclamation and its implementation rests on a straightforward reading of congressional statutes giving the President broad authority to regulate entry into the United States for immigrants and nonimmigrants alike."
Judge Howell added: "Congress could have, but did not, impose the limit on presidential authority that plaintiffs urge."
Business coalitions—led by the U.S. Chamber of Commerce and joined by technology companies and the Association of American Universities—filed suit to block the fee, arguing it renders the H-1B program cost prohibitive, especially for small- and medium-sized firms.
Separately, a coalition of 20 states, spearheaded by Washington Attorney General Nick Brown and California and Massachusetts' Attorneys General, challenged the fee’s legality under the Administrative Procedure Act (APA), arguing the required notice-and-comment process was bypassed, and the fee was arbitrarily set unrelated to administrative costs.
The White House contended the new charge would help deter H-1B program abuse while redirecting visas to high-skilled roles.
What People Are Saying
Bloomberg Intelligence Litigation Analyst Matthew Schettenhelm said: "Though the Chamber had a solid judge — Obama-appointee Judge Beryl Howell, who’s been tough on the Trump administration — she handed Trump a sweeping victory. If Judge Howell didn’t find legal defects in the novel proclamation, we doubt the DC Circuit or U.S. Supreme Court would either."
Washington Attorney General Nick Brown, in a press release on December 15, said: "The H-1B visa program helps bring talented people with critical skillsets to Washington, keeping our state on the cutting edge in highly specialized areas of education and research. The federal government can’t arbitrarily turn these visas into an extortion racket to punish employers and institutions the President does not like."
What Happens Next
The case is now before the U.S. Court of Appeals for the D.C. Circuit, where business, tech, and higher-education stakeholders are pressing for reversal of the policy. Additional legal challenges, including those led by state coalitions, remain pending in other jurisdictions.
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