A federal judge said the Trump administration can move ahead with a $100,000 fee on new H-1B visa applications, providing a setback for U.S. technology companies that rely on hiring skilled foreign workers.

U.S. District Judge Beryl Howell said in a ruling Tuesday that President Donald Trump’s move to radically increase the cost of the popular visa is lawful. The decision provides a boost to the administration’s campaign to restrict immigration and push demand for U.S. workers. The U.S. Chamber of Commerce, which sued to block the proposal, can appeal.

Howell rejected the Chamber’s argument that the president doesn’t have the power to impose the fee, finding that his proclamation was issued under “an express statutory grant of authority to the President.”

“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.

The Chamber’s press office didn’t immediately respond outside regular business hours to a request for comment.

The H-1B visa program is a cornerstone of employment-based immigration, allowing companies in the U.S. to hire college-educated foreign workers for specialized occupations. In September, Trump signed a proclamation to increase the application fee to discourage companies from abusing a program that he claimed displaces U.S. workers.

H-1B visas are awarded based on a lottery system, but are used primarily in the tech industry. Amazon, Tata Consultancy Services Ltd., Microsoft, Meta Platforms Inc. and Apple Inc. are among the companies with the greatest number of H-1B visas, according to the U.S. government.

The Chamber, the nation’s largest business lobbying group, argued in its October lawsuit that raising the fee is unlawful because it overrides federal immigration law and exceeds the fee-setting authority afforded by Congress.

A group of 19 state attorneys general also is challenging Trump’s proclamation. Their lawsuit focuses on the projected impact to the public sector, particularly in the fields of health care and education, that also rely on the H-1V visa program. A separate suit was filed by a global nurse-staffing agency.

The case is Chamber of Commerce vs. U.S. Department of Homeland Security, 25-cv-03675, U.S. District Court, District of Columbia (Washington).

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