A federal court in Washington, D.C., ruled that the executive branch acted within its legal authority in imposing a $100,000 fee on new H-1B visa petitions for workers hired from outside the United States. The fee was introduced through a presidential proclamation issued in September and significantly increased the cost for employers seeking to hire skilled foreign professionals. Business and education organizations challenged the policy, arguing that it conflicted with existing immigration law and exceeded executive authority.

The court found that the requirements under the Immigration and Nationality Act were satisfied, which allows the government to restrict entry into the United States under certain conditions. Based on this authority, the court declined to block the fee and ruled in favor of the government, concluding that federal law grants broad power to regulate entry for both immigrant and nonimmigrant visa holders.

Federal agencies later clarified that the fee applies only to new H-1B petitions for individuals entering from outside the U.S. It does not affect current H-1B workers or foreign students already in the United States who change to H-1B status. While additional legal challenges remain pending, employers should be aware of the increased costs associated with new H-1B filings and continue to monitor future developments.

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