Trump administration sued over $100K fee for skilled worker visas
The U.S. Chamber of Commerce has filed a lawsuit against the Trump administration, challenging the new $100,000 fee imposed on H-1B skilled worker visa applications as being unlawful and harmful to American businesses.
Background of the Lawsuit
President Trump enacted this fee for new, not existing, H-1B visa applicants through an executive order, aiming to diminish alleged abuses of the program and encourage employers to hire more domestic workers. The administration claims this reform is essential, but business leaders, especially in the tech sector, argue that it restricts access to global talent crucial for innovation and competitiveness.
Legal Arguments
The Chamber’s suit, filed in federal court, asserts that the fee violates U.S. immigration laws, which require visa fees to reflect actual government processing costs rather than serving as policy tools. Historically, H-1B visa fees have ranged from $2,000 to under $3,600, making the new $100,000 fee a dramatic increase. The Chamber contends that Trump’s executive authority is bounded by statute and cannot contradict laws passed by Congress.
Impact on Employers and Workers
This fee is seen as particularly damaging to startups and small businesses, many of whom rely on H-1B workers to fill critical gaps in sectors like engineering, IT, and health sciences. Major U.S. companies such as Amazon, Meta, Alphabet, and Microsoft are top sponsors for H-1B visas and assert that the fee threatens the viability of employing global talent. The new fee is scheduled for one year but could be extended if deemed in the national interest.
Reactions from Tech Industry and Legal Experts
Leaders in the tech industry, including Elon Musk, Satya Nadella, and Sundar Pichai, have criticized the fee as damaging to America’s competitive edge and a deterrent for high-skilled immigrants who have historically fueled growth and innovation. Some legal experts and industry voices claim that the move will backfire, potentially causing companies to move operations overseas.
| Fee Type | Old Fee (Typical) | New Fee | Who Pays? | Impact (Chamber’s view) |
|---|---|---|---|---|
| H-1B Application | $2,000–$3,600 | $100,000 | US employers (new apps) | “Cost-prohibitive; reduces global talent access, hits startups & SMEs” |
