$100K H-1B visa fee could hurt key sectors: US business groups warn Trump

Industry groups have warned the Trump administration that the $100,000 H-1B fee could block foreign skilled workers, affecting tech, healthcare, and other critical sectors across the US economy

A coalition of leading US business groups has warned President Donald Trump that his proposed $100,000 fee for H-1B visa applications could harm the nation’s economy. The letter, sent on Friday, cautioned that the fee may jeopardise critical talent pipelines by making it harder for companies to hire skilled foreign workers.

 

The letter, signed by roughly a dozen organisations, included representatives from chipmakers, software firms, and retailers such as the Business Software Alliance, SEMI, the National Retail Federation, the Entertainment Software Association, and the Information Technology Industry Council.

 

“We ask the administration to work with industry on necessary reforms to the H-1B visa programme without increasing the significant challenges US employers face recruiting, training, and retaining top talent,” the groups wrote.

 

Concerns for tech and healthcare sectors

The fee is aimed at curbing abuse of the H-1B programme and encouraging companies to hire domestically. However, industry leaders warned it could threaten a range of sectors from technology and healthcare to finance. Companies such as Microsoft, Amazon, Walmart, and Intel have long relied on H-1B workers to maintain competitive operations. 

 

Cutting-edge sectors, particularly artificial intelligence, biomedical engineering, and advanced manufacturing, require a highly skilled workforce. The groups stressed that the new fee could slow progress in these strategic areas, undermining US leadership in technology and innovation.

 

“The new approach to H-1B visas, as it stands, will harm the administration’s goals to ensure the US remains a leader in AI, revitalises manufacturing growth, and propels US-developed energy,” the coalition wrote.

Administration defends policy

A White House spokesperson defended the new rules, saying the policy will improve access to top talent while reducing fraud. “Widespread visa abuse not only undermines American workers but undermines the companies that need to recruit first-class talent,” said spokesman Kush Desai.

 

Despite the fee announcement, major corporations reportedly urged H-1B employees not to leave the US, highlighting the programme’s importance in retaining critical staff. 

Legal challenge and lawsuit

The $100,000 fee faced its first major legal challenge on October 3, when a global nurse-staffing agency and several unions filed a lawsuit in the Federal Court in San Francisco seeking to block the policy. The groups argued that President Trump  did not have the authority to impose such fees, which they say override the established H-1B system and the constitutional “power of the purse” assigned to Congress.

 

The lawsuit alleges that employers are forced to either pay the fee or seek a “national interest” exemption, potentially allowing selective enforcement. The fee would be in addition to existing H-1B charges and includes a directive for the Labour Secretary to revise prevailing-wage levels to prevent undercutting American workers. Healthcare providers highlighted that H-1B workers were crucial to addressing doctor shortages in rural areas.

 

The industry coalition said it was willing to collaborate with the administration to improve the H-1B system without adding extra burden on employers, calling for reforms that maintain a steady flow of skilled foreign workers.