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The U.S. Chamber of Commerce has initiated legal action against the Trump administration’s imposition of a $100,000 fee on H-1B visas, which are utilized for skilled foreign workers.
Neil Bradley, Chief Policy Officer at the pro-business organization, stated that the fee “will render the program cost-prohibitive” for American employers.
President Trump signed an executive order last month instituting the fee, citing alleged abuses within the visa program. Critics contend that the program undermines the American workforce. The H-1B visa is widely used by the U.S. tech sector, encompassing both major corporations and emerging startups.
In response to the lawsuit, the White House asserted that the fee is lawful and represents a “necessary, initial, incremental step towards necessary reforms” to the program.
The executive order applies to new visa requests within the program and stipulates restrictions on entry without the required payment.
The measure has drawn criticism from tech executives, including Elon Musk, who have argued that the H-1B program enables the U.S. to attract top talent from around the world.
Notable figures such as Elon Musk, Microsoft’s Satya Nadella, and Sundar Pichai, the CEO of Google parent Alphabet, began their careers in the U.S. on H-1B visas.
The Trump administration also established a new “gold card” program to expedite visas for certain immigrants in exchange for fees starting at £1 million.
The Chamber of Commerce argued in its complaint on Tuesday that the fee, if implemented, “would inflict significant harm on American businesses,” forcing them to either substantially increase labor costs or reduce the hiring of highly skilled employees.
However, in a press release, the Chamber, representing over 3 million businesses, also commended President Trump for his agenda of “securing permanent pro-growth tax reforms, unleashing American energy, and unraveling the overregulation that has stifled growth.”
U.S. Commerce Secretary Howard Lutnick voiced support for the President’s order, stating that “all of the big companies” were in agreement with the fee.
“The company needs to decide… is the person valuable enough to have a $100,000-a-year payment to the government, or they should head home, and they should go hire an American,” Lutnick stated.
Many H1-B visa holders come to the United States from India and China.
Tech companies argue that workers brought into the U.S. cannot readily be replaced by American workers.
White House spokesperson Taylor Rogers stated that the administration’s action on H-1B visas discourages companies from “driving down American wages.”
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