'Unlawful': US Chamber of Commerce sues Trump admin over $100k H-1B visa fee

The lawsuit follows Trump's $100,000 fee hike for new H-1B applicants, which the White House defended as a move to protect American jobs from cheaper foreign labour

The US Chamber of Commerce has filed a lawsuit against the Donald Trump administration’s decision to impose a $100,000 fee on new H-1B visa applicants, calling the move “unfair” and legally flawed.

 

According to an Associated Press report, the Chamber filed the case in a federal court in Washington on Thursday, urging the court to block enforcement and rule that Trump overstepped his executive authority. The fee, announced a month ago, was framed by the White House as a response to companies hiring cheaper foreign talent over Americans. Officials later clarified it would apply only to new applicants, not existing visa holders, and offered a form to request exemptions.

 

Why the Chamber says the fee violates immigration law

 

The lawsuit marks the Chamber’s first legal action against the Trump administration since it took office. Representing over 30,000 businesses, the Chamber argued that the fee violates US immigration laws that mandate visa charges reflect only actual processing costs.

 

Naming the Department of Homeland Security and the State Department as defendants, the suit claims: “The President has significant authority over the entry of noncitizens into the United States, but that authority is bounded by statute and cannot directly contradict laws passed by Congress.”

 

Before the proposed $100,000 charge, most H-1B applications cost less than $3,600. The Chamber contends the steep fee could force businesses to reduce skilled hires or bear unsustainable labour costs, especially in tech and consulting sectors.

 

Business groups say H-1B visas fill workforce gaps

 

While critics argue that H-1B and other skilled-worker visa programmes displace US workers with cheaper labour, business groups insist these visas are critical for addressing labour shortages—particularly in specialised fields like engineering, IT, and health sciences.

 

Reuters reported that companies typically pay $2,000 to $5,000 in fees to sponsor H-1B employees, depending on size and other eligibility factors.

 

What the H-1B programme allows and who uses it

 

The H-1B visa programme permits up to 85,000 skilled foreign workers annually to work in the United States for a period of up to six years. Indian nationals comprise roughly 71 per cent of all H-1B recipients, with technology and IT services firms among the largest sponsors.

 

The proposed fee is slated to be valid for one year but may be extended if the government deems it necessary in the national interest.

 

Trump's H-1B visa fee hike will backfire: Michael Moritz 

 

According to Michael Moritz, a Silicon Valley investor, an early backer of Google, PayPal, and other tech giants, recently claimed that the Trump administration's move to impose a $100,000 fee on fresh H-1B visa applicants will backfire, while also damaging America's technology edge. 

 

In a piece published in The Financial Times, Moritz argued that engineers from Eastern Europe, Turkey, and India possess skills comparable to those of American professionals and argued that the United States should support domestic expansion of tech companies instead of pushing them to move operations overseas.