The judge ruled on December 23 that it was within the President’s powers to regulate immigration, rejecting arguments brought by the Chamber of Commerce that the proclamation exceeded Trump’s statutory authority.
“The parties’ vigorous debate over the ultimate wisdom of this political judgment is not within the province of the courts,” wrote the Obama-appointed judge Beryl Howell.
“So long as the actions dictated by the policy decision and articulated in the Proclamation fit within the confines of the law, the Proclamation must be upheld.”
The lawsuit is among two other cases challenging Trump’s controversial $100K fee for H-1B petitions, which the plaintiffs argued would lead companies, hospitals and other employers to cut jobs and weaken the services they provide to the public.
It was brought by the US Chamber of Commerce – the world’s largest business federation with roughly 300,000 members – and the Association of American Universities (AAU), which represents 69 US-based research universities.
Following the proclamation, the administration clarified international students changing status in the US would be exempt from the fee, though stakeholders have said it will undermine America’s leadership in education, research and innovation.
Zuzana Cepla Wootson, deputy director of federal policy at the Presidents’ Alliance, called the judge’s decision “deeply disappointing”.
“The United States must stop deterring the very talent that strengthens our classrooms, fuels our economy, and drives American innovation,” she said, urging Congress to “pursue bipartisan solutions that support US prosperity and competitiveness”.
The White House did not immediately respond to a request for comment.
The fee, which is still being challenged by two other lawsuits, hikes the cost of an H-1B visa petition by more than 20 times the previous charge, which ranged between $2,000 and $5,000.
The H-1B visa program enables US employers to temporarily hire international workers in “specialty occupations” from healthcare to computer science and financial analysis. California’s tech industry is particularly reliant on the visa stream.
The United States must stop deterring the very talent that strengthens our classrooms, fuels our economy, and drives American innovation
Zuzana Cepla Wootson, Presidents’ Alliance
“The $100,000 fee makes H-1B visas cost prohibitive for businesses, especially small- and medium-sized businesses that can least afford it,” Chamber of Commerce executive vice president Daryl Joseffer said after the ruling.
He said the chamber was considering further legal action and underscored the positive economic benefits of the H-1B stream, which has been found to reduce unemployment rates and lead to faster wage growths for US employers, according to the National Foundation for American Policy (NFAP).
Howell’s ruling came the same day as the government finalised a rule to replace the random H-1B selection process with a weighted system favouring higher earners – something critics say will harm the US tech industry and dampen the country’s appeal among international students. The new process will come into effect on February 27.
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