U.S. Chamber of Commerce Appeals Ruling in $100K H-1B Visa Lawsuit

In a winter break ruling, a federal court in Washington, DC, ruled against the U.S. Chamber of Commerce and the Association of American Universities (AAU) in a lawsuit to revoke the Trump Administration’s new $100,000 H-1B visa fee.

The plaintiffs appealed for a fast-track review, citing the upcoming H-1B visa lottery season commencing in early March. The U.S. Court of Appeals for the District of Columbia accepted the appeal, the Administration did not object, and the Court is expected to hear arguments in February.

On December 24, 2025, the DC federal court upheld the fee, stating that the president has the authority to regulate immigration. The Chamber and AAU argued that the Trump Administration’s Proclamation exceeded the scope of the Immigration and Nationality Act (INA) and the Administrative Procedure Act, which requires fees to be set by Congress and/or adjusted through notice-and-comment rulemaking. The decision came as a surprise, as the law is clear on fee-setting procedures.

Two additional lawsuits to revoke the fee are pending. Democracy Forward, a progressive nonprofit law firm, filed the first lawsuit shortly after the fee was imposed. This group and associated firms represent a coalition of impacted workers, including healthcare workers, labor unions, schools, and religious organizations. That lawsuit was filed in a California federal court and included, as a plaintiff, a staffing firm, Global Nurse Force, which recruits in-demand specialty medical professionals.

Democratic Attorneys General representing 20 different states sued in Massachusetts federal court in mid-December, on mostly the same grounds as the Chamber/AAU lawsuit.

Significantly, universities across the country rely on professors working in the U.S. on H-1B visas for groundbreaking research and teaching. Oregon is one of the plaintiff states. According to the lawsuit, “public universities in Oregon are dependent on H-1B visa holders to fill specialized faculty, research, and staff roles. Oregon State University currently sponsors more than 150 individuals with H-1B visas, and there are 50 H-1B visa holders currently working at the University of Oregon.”

“Oregon’s colleges, universities, and research institutions rely on skilled international workers to keep labs running, courses on track, and innovation moving forward,” Attorney General Dan Rayfield said in a statement. “This enormous fee would make it nearly impossible for these institutions to hire the experts they need, and it goes far beyond what Congress ever intended. This threatens Oregon’s ability to compete, educate, and grow.”

The Trump Administration imposed the fee, effective September 21, 2025. The Proclamation instead relies on provisions in the INA, specifically Sections 212(f) and 215(a), that allow the president to restrict immigration; here, President Trump is implementing a $100,000 fee to accomplish this goal.

The Proclamation cites several reasons for restricting nonimmigrant employment, substantially focusing on IT “outsourcing” companies, claiming their alleged abuse of the H-1B program creates a national security threat.

“The abuse of the H-1B program is also a national security threat. Domestic law enforcement agencies have identified and investigated H-1B-reliant outsourcing companies for engaging in visa fraud, conspiracy to launder money, conspiracy under the Racketeer Influenced and Corrupt Organizations Act, and other illicit activities to encourage foreign workers to come to the United States.”
“Further, abuses of the H-1B program present a national security threat by discouraging Americans from pursuing careers in science and technology.”
“The severe harms that the large-scale abuse of this program has inflicted on our economic and national security demand an immediate response.”

Unstated motivations may include revenue generation and perceived U.S. job creation; however, the unintended consequence could be projects and companies relocating offshore, potentially harming U.S. workers, businesses, and the U.S. economy.

TechServe members have informed us this fee may have a significant impact on their businesses. Our Government Affairs Team will continue to monitor the litigation and provide status reports.

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