The ruling provides a setback for the US technology companies which rely on H-1B visas to recruit skilled foreign workers.
On the other hand, it gives a boost to the Trump administration while legitimising its immigration policies and push for hiring of US employees.The US Chamber of Commerce had filed a lawsuit against the proposal, arguing that the president does not have the power to radically impose the fees.
Howell found that Trump’s proclamation was issued under “an express statutory grant of authority to the President,” as per Bloomberg.
“Here, Congress has granted the president broad statutory authority, which he has used to issue the proclamation addressing, in the manner he sees fit, a problem he perceives to be a matter of economic and national security,” she wrote in the order.The Chamber’s executive vice president Daryl Joseffer expressed disappointment in a statement.
“We are disappointed in the court’s decision and are considering further legal options to ensure that the H-1B visa programme can operate as Congress intended: to enable American businesses of all sizes to access the global talent they need to grow their operations,” Joseffer said, as per BBG.
The ruling comes at a time when the US Department of Homeland Security (DHS) announced changes to the H-1B visa programme on Tuesday, December 23, while replacing the random lottery system with a selection process based on skills and higher payment.
However, the annual limit of 65,000 visas and additional 20,000 for US advanced degree holders was not changed.
The new rule will come into effect from February 27, 2026 and will apply to the FY27 H-1B cap season.
The move is expected to impact the Indian IT companies and professionals who have benefitted from the earlier H-1B visa programme. Now, the companies may have to reconfigure their hiring strategy.
Read more: New US H-1B rules could hit Indian IT firms as DHS ends lottery
