US Chamber Of Commerce Sues Trump Administration Over $100,000 H-1B Visa Fee | World News
The U.S. Chamber of Commerce, the nation’s largest business organization, has taken legal action against the Trump administration over a proposed $100,000 fee for H-1B visa applications, calling the measure “illegal.”
The lawsuit, filed Thursday in Washington district court, claims the fee would cause “substantial harm” to American businesses by forcing them to either sharply increase labor costs or reduce the hiring of highly skilled workers who have no suitable domestic replacement.
The chamber criticized President Trump’s September 19 statement as “blatantly illegal” and “a boon to America’s economic rivals.”
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“The proclamation is not just a misguided policy; it is clearly illegal. The President has significant authority over the entry of non-citizens into the United States. However, this authority is limited by law and cannot directly conflict with laws passed by Congress,” the filing said.
US Chamber of Commerce Executive Vice President Neil Bradley said the wage would “make the cost of accessing global talent prohibitive for US employers” and warned that the American economy “needs more workers, not fewer.”
The Chamber’s lawsuit, which represents nearly 300,000 direct members and indirectly represents more than three million businesses and professional organizations nationwide, marks the second major domestic challenge to the new H-1B regulations.
Earlier this month, a coalition of unions, educators and religious groups filed the lawsuit in California’s Northern District court. They described Trump’s statement as riddled with “multiple errors” and criticized it for ignoring “the benefits of the H-1B visa program to the American economy.” The plaintiffs also called the $100,000 visa fee “unprecedented, unfair and unlawful.” Among those in attendance were the Justice Action Center, South Asian American Justice Cooperation, and the Democracy Forward Foundation.
When announcing the announcement in September, President Trump claimed that the goal of the policy was to “encourage hiring of American workers.”
Commerce Secretary Howard Lutnick defended the measure, saying it would deter companies from hiring foreign workers. “The whole idea is that these big tech companies or other big companies are not going to train foreign workers anymore. First they have to pay the government $100,000, and then they have to pay the employees. So it’s not economical at all. You’re going to train someone, someone who just graduated from one of the big universities around our country. Train Americans. Stop bringing in people to take our jobs. That’s the policy here. $100,000 a year for H-1B visas,” he explained.
The proclamation caused significant confusion as it affected existing H-1B visa holders, potentially making it more difficult for them to re-enter the United States. However, the White House clarified on September 20 that the fee is a “one-time” fee that applies only to new visa applications, excluding renewals and existing visa holders.
Shortly thereafter, the U.S. Department of Homeland Security (DHS) announced plans to change the regulations governing the H-1B visa process. The proposed changes aim to replace the current lottery system with a weighted selection that favors more highly qualified candidates.
In 2024, more than 70 percent of approved H-1B visas were issued to Indian-born workers; This reflects the significant backlog and large pool of skilled immigrants from India.
(With inputs from IANS)
