The US Chamber of Commerce, the nation’s largest business organisation, has initiated legal action against the Trump administration over the proposed $100,000 fee for H-1B visa applications, describing the measure as “unlawful.”
Filed on Thursday in a Washington district court, the lawsuit contends that the fee would inflict “significant harm on American businesses” by forcing them to either sharply increase labour costs or reduce the hiring of highly skilled workers for whom there are no suitable domestic replacements.
The Chamber criticised President Trump’s September 19 proclamation as “plainly unlawful” and a “boon to America’s economic rivals.”
“The Proclamation is not only misguided policy; it is plainly unlawful. The President has significant authority over the entry of noncitizens into the United States. Still, that authority is bounded by statute and cannot directly contradict laws passed by Congress,” the filing stated.
Neil Bradley, Executive Vice President of the US Chamber of Commerce, said the fee would make it “cost-prohibitive for US employers” to “access global talent,” warning that the American economy “requires more workers, not fewer.”
Representing approximately 300,000 direct members and indirectly representing over three million businesses and professional bodies across the country, the Chamber’s lawsuit marks the second major domestic challenge to the new H-1B regulations.
Earlier this month, a coalition of unions, educators, and religious groups filed a lawsuit in California’s Northern District court. They described Trump’s proclamation as fraught with “multiple errors” and criticised it for ignoring the “benefits of the H-1B visa programme to the American economy.” The plaintiffs also labelled the $100,000 visa fee “unprecedented, unjustified and unlawful.” Among those involved were the Justice Action Center, South Asian American Justice Collaborative, and Democracy Forward Foundation.
When announcing the proclamation in September, President Trump claimed the policy’s aim was to “incentivise hiring American workers.”
Commerce Secretary Howard Lutnick defended the measure, saying it would discourage companies from employing foreign workers. “The whole idea is, no more will these big tech companies or other big companies train foreign workers. They have to pay the government $100,000, then they have to pay the employee. So, it’s just not economic. You’re going to train somebody, one of the recent graduates from one of the great universities across our land. 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 considerable confusion, as it appeared to affect current H-1B visa holders, potentially complicating their ability to re-enter the US. However, the White House clarified on 20 September that the fee is a “one-time” charge applicable only to new visa applications, excluding renewals and existing holders.
Shortly afterwards, the US Department of Homeland Security (DHS) announced plans to amend regulations governing the H-1B visa process. The proposed changes aim to replace the current lottery system with a weighted selection favouring higher-skilled applicants.
In 2024, over 70 per cent of approved H-1B visas were granted to Indian-born workers, reflecting a significant backlog and the large pool of skilled immigrants from India.
(With inputs from IANS)