A federal judge handed President Donald Trump a major victory on Tuesday night in his effort to rein in the massive flow of cheap, foreign labor into the United States.
D.C. District Judge Beryl Howell upheld President Donald Trump’s authority to slap a $100,000 fee on new H-1B visa applications, according to court documents. The ruling marks the latest action against a visa program adored by big business, but long accused of displacing American workers, particularly those in the tech industry. (RELATED: EXCLUSIVE: New Trump Admin Rules To Weed Out Migrants Defrauding Domestic Abuse Benefits)
The Trump administration’s decision to make approvals of new H-1B applications contingent upon a $100,000 payout is within the power Congress delegated to the White House under immigration law, Howell, appointed to the bench in 2010 by President Barack Obama, wrote in her 56-page decision.
“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,” the Obama-appointed judge wrote.
WASHINGTON, DC – APRIL 13: Chief U.S. District Judge for the District of Columbia Beryl A. Howell listens during the investiture ceremony for U.S. District Judge Trevor N. McFadden April 13, 2018 at the U.S. District Court in Washington, DC. (Photo by Alex Wong/Getty Images)
Trump, whose appeal to working-class voters across the country helped propel his 2024 presidential victory, signed a proclamation in September that restricted entry under the H-1B visa program unless accompanied by the six-figure fee. The White House framed the move as a way to ensure U.S. employers would only be importing the most valuable of foreign talent while not hastily replacing American workers.
The $100,000 fee does not apply to existing H-1B holders or those who submitted applications before Sept. 21, according to the administration.
“President Trump promised to put American workers first, and his commonsense action on H-1B visas does just that by discouraging companies from spamming the system and driving down American wages, while providing certainty to employers who need to bring the best talent from overseas,” White House spokeswoman Taylor Rogers previously told the Daily Caller News Foundation.
The U.S. Chamber of Commerce, a massive business lobby representing hundreds of thousands of different employers, filed a lawsuit against the proclamation in October, claiming the order unlawfully overrides provisions in the Immigration and Nationality Act and allegedly makes it “cost-prohibitive” for companies to utilize foreign labor. In response to Howell’s ruling, the business lobby appeared unwilling to accept defeat.
“We are disappointed in the court’s decision and are considering further legal options to ensure that the H-1B visa program can operate as Congress intended: to enable American businesses of all sizes to access the global talent they need to grow their operations,” Daryl Joseffer, Executive Vice President and Chief Counsel of the U.S. Chamber of Commerce, said in a public response.
A coalition of Democrat-led states also launched their own lawsuit against the proclamation earlier in December, claiming that U.S. employers are in need of the “highly skilled” labor provided by the H-1B visa system. That court challenge is being waged in Massachusetts federal court, with the backing of roughly 20 different Democrat attorneys general.
Congress created the H-1B program in 1990, intending to utilize “highly specialized” foreign labor, according to the U.S. Citizenship and Immigration Services (USCIS). Although it’s a non-immigrant visa, H-1B holders can eventually chart a path to legal permanent residence, allowing them to remain in the country in perpetuity.
The controversial visa program is incredibly popular among U.S.-based employers, with new H-1Bs capped at 85,000 a year and a lottery system that decides which foreign nationals obtain them.
The Trump administration has taken other actions to rein in purported problems within the H-1B program. USCIS revealed on Tuesday that it was phasing out the program’s random lottery system for visa selection in favor of a process that prioritizes higher-skilled foreigners.
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