US Chamber Sues Trump Over $100,000 H-1B Visa Fee, Citing Harm to Businesses

The U.S. Chamber of Commerce filed a federal lawsuit on October 16, 2025, challenging the Trump administration's imposition of a $100,000 annual fee on new H-1B visa applications, arguing that the policy unlawfully exceeds presidential authority and threatens American businesses. The complaint, lodged in the U.S. District Court for the District of Columbia, names the Department of Homeland Security, the State Department, and their secretaries as defendants. It seeks a court declaration that the fee violates immigration statutes and an injunction to prevent enforcement.

The Chamber, representing over 300,000 businesses, described the move as its first legal action against the administration since Trump's January inauguration. H-1B visas, established by Congress in 1990, allow U.S. employers to hire foreign workers in speciality occupations requiring at least a bachelor's degree, such as engineering and software development. The programme caps at 85,000 visas annually—65,000 general plus 20,000 for U.S. advanced-degree holders—allocated via lottery when demand exceeds supply.

The fee, announced via presidential proclamation on September 19, 2025, and effective September 21, represents a 25- to 50-fold increase from prior costs of $2,000 to $5,000 per petition, depending on employer size. President Trump justified the overhaul during an Oval Office signing alongside Commerce Secretary Howard Lutnick, claiming it curbs programme abuse where companies allegedly displace U.S. workers with lower-paid foreign labour, citing examples of firms laying off Americans after securing H-1B approvals.

The White House clarified that the charge applies only to new applicants, sparing renewals and current holders, and introduced exemption forms for qualifying cases. It also proposed shifting from lottery to wage-based prioritisation, favouring higher-paid roles to attract top talent while protecting domestic wages—a rule potentially finalised for the 2026 cycle. Accompanying the H-1B changes was the "Trump Gold Card", a $1 million investment visa for permanent residency and citizenship pathways, aimed at wealthy immigrants.

In its 45-page complaint, the Chamber contends the fee "blatantly contravenes" congressional mandates that limit charges to actual processing costs, not revenue generation or entry restrictions. The President has significant authority over non-citizen entry, but that authority is bounded by statute," the filing states, warning of "significant harm" to employers forced to hike labour expenses or forgo irreplaceable skills.

Tech giants, the program's heaviest users, dominate approvals: Amazon secured over 10,000 H-1B visas in fiscal 2025, followed by Tata Consultancy Services, Microsoft, Apple, and Google. Nearly 75% of recipients hail from India, fuelling U.S. innovation in Silicon Valley, where California hosts the most H-1B workers. Beyond tech, the visas support healthcare, education, and research, with nonprofits like universities exempt from some base fees but still burdened by the surcharge. Critics, including Elon Musk and Microsoft's Satya Nadella—both H-1B alumni—argue it stifles global talent attraction, potentially driving offshoring.

Also Read: Trump’s $100K H-1B Visa Fee Hits Indian IT Giants Hard

The lawsuit amplifies a rift between Trump's pro-business rhetoric and his hardline immigration stance, echoing 2020 Chamber challenges to H-1B entry bans. White House spokesperson Taylor Rogers defended the policy as a "lawful, incremental reform" prioritising American workers by deterring "wage suppression". On X, reactions split along ideological lines: business advocates decried economic sabotage, while supporters hailed worker protections, with posts from outlets like Moneycontrol and Hindustan Times garnering thousands of views.

As litigation unfolds, the fee—set to expire in one year unless extended—could reshape U.S. competitiveness amid talent shortages, with economists warning of stalled job growth. The Chamber urged congressional reforms for legal pathways, positioning the suit as a defence of statutory balance over executive overreach.

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