District Court Ruled in favor of DHS in lawsuit over the $100k H-1B fee

Last year, The Chamber of Commerce and the Association of American Universities sued the U.S. Department of Homeland Security and the U.S. Department of State, arguing the presidential proclamation limiting H-1B visas and imposing a $100,000 fee was unlawful. 

But t  he court found the President acted within authority granted by Congress under immigration statutes. The court also stated that the impact of the H-1B program on the U.S. economy and national security "is not at issue in this case," and held that the parties' dispute over the "ultimate validity" of that policy decision was not a matter within the court's jurisdiction "so long as that presidential proclamation falls within the framework of the law."  

As a result, the plaintiffs' motion was denied, and defendants’ cross-motion for summary judgment was granted on December 23, 2025.

Then, on January 5, 2026, the U.S. Court of Appeals agreed to expedite the hearing on the appeal by the U.S. trade associations and research institutions challenging the district court's ruling.  

The U.S. Chamber of Commerce, the nation's largest business lobbying group, had argued that an expedited hearing was necessary to protect employers' rights in advance of the annual H-1B visa lottery, which is scheduled to begin this March. The Trump administration did not object to the expediting, and the federal appeals court agreed to a schedule that would allow oral arguments to be heard in February 2026.  

When oral arguments are heard in February, a decision will likely be rendered relatively soon and is expected to provide a clearer outlook for employers as to whether the fee will remain in effect or be suspended by the proceedings before the H-1B lottery registration period this March.

We will continue to monitor developments in the appeals related to the said proclamation and future legal developments.