A major legal challenge to a dramatic increase in the cost of a key U.S. work visa has failed, setting the stage for potential upheaval for Canadian tech professionals and companies with cross-border operations. A federal judge has ruled that the Trump administration can proceed with a plan to impose a staggering $100,000 application fee on new H-1B visas.
Court Ruling Backs Presidential Authority
In a decision issued on Tuesday, December 24, 2025, U.S. District Judge Beryl Howell determined that the effort to radically increase the cost of the popular visa is lawful. The ruling represents a significant victory for the administration's broader campaign to restrict certain immigration pathways and prioritize U.S. workers.
Judge Howell, in her written opinion, rejected arguments from the U.S. Chamber of Commerce that President Donald Trump lacked the authority to impose such a fee. She found the proclamation was issued under "an express statutory grant of authority to the President." Congress, she wrote, has given the president broad power to address perceived economic and national security problems as he sees fit.
Business Backlash and Legal Challenges Continue
The U.S. Chamber of Commerce, the nation's largest business lobbying group which filed a lawsuit in October to block the proposal, expressed deep disappointment. Daryl Joseffer, the Chamber's executive vice president, stated that the $100,000 fee makes the H-1B visa program cost-prohibitive for many businesses.
"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," Joseffer said. The Chamber argued the fee unlawfully overrides federal immigration law and exceeds congressional fee-setting authority.
This ruling, however, is not the final word. Separate lawsuits are still pending. A coalition of 19 state attorneys general is challenging the proclamation, focusing on its projected damage to public sectors like health care and education. A global nurse-staffing agency has also filed suit. A hearing in one of the California cases is scheduled for February 12, 2026, in Oakland.
Implications for Canada and the Tech Sector
The H-1B visa program is a cornerstone for hiring skilled foreign workers in specialized occupations, heavily utilized by the U.S. technology industry. For Canadian tech firms with U.S. offices or expansion plans, and for high-skilled Canadian professionals seeking employment in the United States, this fee poses a substantial new barrier.
If ultimately implemented, the policy could redirect global talent flows, potentially benefiting Canada's own tech hubs like Toronto, Vancouver, and Montreal as an alternative destination. The dispute is widely expected to be ultimately resolved by the U.S. Supreme Court.
The ruling by Judge Howell provides a temporary green light for the policy, which was established by a Trump proclamation in September 2025. The administration argues the steep fee is designed to discourage companies from abusing a program it claims displaces American workers.
