The legal battle over the Trump administration’s proposed $100,000 H-1B visa fee is moving closer to a conclusion, as plaintiffs have filed their reply to the government’s defence. The US Chamber of Commerce and the Association of American Universities (AAU) are challenging the fee, arguing that Congress, not the President, has authority over H-1B visa regulations, as reported by the Forbes.The case has attracted significant attention from companies that rely on high-skilled international workers, particularly in technology and artificial intelligence sectors. With the H-1B annual limit set at 65,000 visas and an additional 20,000 for individuals holding a US master’s degree or higher, the fee could drastically affect employers and foreign workers alike, according to Forbes.US Chamber and AAU challenge presidential authorityThe US Chamber of Commerce filed the complaint on October 16 against the Department of Homeland Security, the State Department, and other officials, with the AAU joining later as a co-plaintiff. Daryl L. Joseffer of the US Chamber Litigation Center, in conversation with Forbes, explained, “The proclamation fundamentally transforms a programme designed to bolster the US economy by providing a pathway for employers to hire talented workers, into one that is prohibitively expensive.”The complaint claims the President’s proclamation contradicts statutory authority, arguing that Section 212(f) does not permit the Executive to override Congress’s fee provisions. As quoted by Forbes, the plaintiffs stated, “By imposing a $100,000 fee on H-1B petitions, the Proclamation tramples the statutory scheme Congress designed.”Justice Department defends the feeThe Justice Department has argued that the President has “extraordinarily broad discretion to suspend the entry of aliens whenever he finds their admission detrimental to the interest of the United States,” in a statement quoted by Forbes. The department also claimed the proclamation “does not conflict with any provision of the INA” and is aimed at protecting American workers and national security.Plaintiffs, however, contend that the proclamation imposes an additional financial burden without congressional authorisation. In their reply, they pointed out that the Supreme Court’s Hawaii decision does not support the administration’s arguments about fees. As reported by Forbes, the plaintiffs said, “Hawaii was not about fees. The government’s assertion of open-ended authority is contrary to the precedent itself.”Implications for employers and foreign workersThe proposed fee would primarily affect new H-1B visa holders entering the US, not individuals changing status from F-1 student visas to H-1B. Employers such as Amazon, Meta, Microsoft, and Google have been the largest sponsors of H-1B petitions in FY 2025, according to the National Foundation for American Policy, while Indian companies have largely disappeared from the top rankings.Executives from TCS and LTIMindtree said they do not plan to file new H-1B petitions in the coming year, as quoted by Forbes. The plaintiffs also highlighted that international students constitute approximately 70% of full-time graduate students in AI-related fields, indicating the potential impact on the US technology workforce.Next steps in the caseUS District Judge Beryl A. Howell has scheduled oral arguments for December 19 at 10 a.m. in Washington, D.C., as reported by Forbes. The outcome will determine whether the Trump administration can legally impose the unprecedented $100,000 H-1B fee or whether Congress retains exclusive authority over visa fees.
