US Judge Upholds Trump H-1B Fee

A US federal judge, Beryl Howell, has upheld Donald Trump's administration's decision to impose a $100,000 fee on new H-1B visa applications, ruling it lawful. This decision is a significant setback for US technology companies and IT outsourcing firms, including Tata Consultancy Services, Infosys, and Cognizant, which heavily rely on skilled foreign workers. The fee is expected to add hundreds of millions to billions of dollars in costs for these companies, potentially leading to a steep drop in visa demand and a shift of jobs overseas, particularly to India. In addition to the fee, the United States Department of Homeland Security announced plans to replace the H-1B lottery system with a weighted selection process, prioritizing higher-paid, higher-skilled workers, effective February 26, 2026. The United States Chamber of Commerce and a coalition of 19 state attorneys general have filed lawsuits challenging these policies, arguing they are unlawful and detrimental to businesses and public services. While legal battles continue, many employers are already adjusting hiring plans, with some projecting a 30% to 50% reduction in H-1B lottery entries next year.