US Chamber Of Commerce Challenges Trump's $100,000 H-1B Visa Fee in Federal Lawsuit

The US Chamber of Commerce has initiated legal action against the Trump administration regarding the newly imposed $100,000 annual fee for H-1B visa applications, asserting that the fee is unlawful and would cause substantial damage to American businesses.

According to the Chamber of Commerce, prior to Trump's implementation of this fee, visa applications cost less than $3,600.

In a federal lawsuit filed Thursday in Washington DC, the Chamber has requested the court to declare that President Donald Trump exceeded his executive authority by implementing this fee and to prevent federal government agencies from enforcing it.

H-1B visas are designed for high-skilled positions that technology companies struggle to fill domestically and are primarily utilized for tech professionals from India. Major technology corporations are the primary users of these visas, with nearly three-quarters of approved applicants originating from India. However, essential workers such as teachers and doctors also utilize this visa category.

The Trump administration announced this substantial fee increase last month, contending that employers were substituting American workers with less expensive talent from overseas. Since the announcement, the White House has clarified that the fee will not affect existing visa holders and has offered a process to request exemptions.

In its legal filing, the Chamber argues that this new fee violates immigration laws governing the H-1B program, including regulations stipulating that fees must be based on costs incurred by the government in processing visa applications.

"While the President possesses significant authority regarding non-citizen entry into the United States, that authority is limited by statute and cannot directly contradict laws enacted by Congress," states the complaint, which names the Department of Homeland Security, the State Department, and their respective cabinet secretaries as defendants.

The Chamber maintains that implementing this fee would inflict considerable harm on American businesses, forcing them to either substantially increase their labor costs or hire fewer highly skilled employees for positions where domestic replacements are not readily available.

The new fee is scheduled to expire after one year but could be extended if the government determines it serves the national interest.

Traditionally, H-1B visas have been distributed through a lottery system. This year, Amazon emerged as the leading recipient with over 10,000 visas awarded, followed by Tata Consultancy, Microsoft, Apple, and Google. California hosts the highest concentration of H-1B workers nationwide.

Critics of the program argue that H-1B positions often go to entry-level jobs rather than senior roles requiring specialized skills. Additionally, while the program is not intended to undermine US wages or displace American workers, critics contend that companies can reduce costs by classifying positions at the lowest skill levels, even when hiring workers with substantial experience.