U.S. Appeals Court Fast-Tracks $100K H-1B Fee Challenge

The U.S. Court of Appeals for the District of Columbia Circuit has expedited the appeal of a recent ruling affirming the Trump Administration’s controversial $100,000 fee on certain H-1B visa petitions. This decision, made on January 5, 2026, follows a December 24, 2025, ruling from the U.S. District Court for the District of Columbia, which upheld the legality of the fee. The fee was introduced through a Presidential Proclamation on September 19, 2025, and the lower court determined it falls within the authority granted to the executive branch by Congress to regulate noncitizen entry into the United States.

The plaintiffs in this case, the U.S. Chamber of Commerce and the Association of American Universities, have expressed serious concerns about the financial burden the fee imposes on employers seeking to sponsor H-1B visa applicants. They argue that the fee could deter companies from hiring skilled foreign workers and negatively impact the U.S. labor market. As the annual H-1B registration and lottery process approaches in March, which provides a critical opportunity for employers to secure sponsorship, the plaintiffs requested that the appellate process be expedited.

In response, the Court of Appeals has set an accelerated timeline for the case. The appellants must submit their appellate brief by January 9, 2026, while the Trump Administration is required to respond by January 30, 2026. Oral arguments are anticipated in February 2026, ensuring that the court addresses the issue promptly as employers prepare for the upcoming lottery.

In the interim, the Department of Homeland Security announced a final rule on December 29, 2025, implementing a new “Weighted Selection Process” for the fiscal year 2027 H-1B visa registration and lottery. This new selection process aims to prioritize applicants based on specific criteria, potentially reshaping how foreign talent is allocated in the United States.

As the situation develops, the implications of the appeals court’s decision will likely resonate throughout the business and academic communities, highlighting the ongoing debate over immigration policy and its impact on the U.S. economy.