A United States federal judge on Tuesday upheld President Donald Trump’s decision to impose a $100,000 fee for processing H-1B visa applications, despite acknowledging that the policy could “inflict significant harm on American businesses and institutions of higher education.”

In a 56-page opinion, US District Judge Beryl Howell ruled that the president possesses “broad statutory authority” to address what he considers “a problem he perceives to be a matter of economic and national security.”

The $100,000 application fee, which was announced in September, was implemented with just 36 hours’ notice, a move that reportedly caused widespread confusion and disruption over its scope, implementation and the categories of applicants affected.

The H-1B visa fee forms part of a broader immigration crackdown initiated by Trump, who has intensified actions against migrants since returning to the White House.

Until the introduction of the fee, the administration’s immigration measures had not directly targeted the H-1B visa programme, which is heavily relied upon by Silicon Valley and the wider technology sector.

Trump has argued that the H-1B visa system is being misused to replace American workers with foreign employees willing to accept lower wages.

The United States issues 85,000 H-1B visas annually through a lottery system, with India accounting for approximately three-quarters of successful applicants.

Several technology entrepreneurs have warned against imposing restrictions on the H-1B visa programme.

Among them is Trump’s former ally, Elon Musk, who has cautioned that the United States lacks sufficient homegrown talent to fill critical vacancies in the technology sector.

The lawsuit challenging the $100,000 application fee was filed by the US Chamber of Commerce, a pro-business lobbying organisation, and the Association of American Universities, which represents 69 research universities across the United States.

In their suit, the plaintiffs argued that the affected workers “contribute enormously to American productivity, prosperity and innovation.”

The US Chamber of Commerce, traditionally aligned with Republican interests, reportedly spent more than $76 million on lobbying efforts in 2024 alone.

According to data from OpenSecrets.org, the chamber also contributed nearly $6 million directly to Republican political groups and candidates during the same period.

Despite the ruling, at least two additional lawsuits challenging the $100,000 H-1B visa application fee are still pending before US courts.