US Chamber sues Trump for $100,000 H-1B visa fee hike

In a significant escalation of tensions between corporate America and the White House, the United States Chamber of Commerce has filed a federal lawsuit challenging the Donald Trump administration's recent imposition of a $100,000 fee on new H-1B visa petitions. The legal action, lodged on Thursday, 16 October 2025, in the US District Court for the District of Columbia, targets the Department of Homeland Security, the State Department, and their respective secretaries. It seeks a court declaration that President Donald Trump exceeded executive authority and an order to prevent enforcement of the fee.

The controversial fee stems from a presidential proclamation issued last month, titled "Restriction on Entry of Certain Nonimmigrant Workers." It applies specifically to new H-1B visa applications for foreign workers outside the US, with the White House clarifying that it is not an annual charge amid initial confusion. Before this, most H-1B applications cost under $3,600. The fee is set to expire after one year but could be extended if deemed in the US interest. It does not affect existing visa holders, and exemptions can be requested via a specific form.

Legal arguments, violations claimed

The lawsuit argues that the $100,000 fee contravenes the Immigration and Nationality Act (INA), which stipulates that visa charges should only cover government administrative costs. By imposing this substantial barrier, the administration is accused of unlawfully usurping congressional authority and undermining the H-1B program's intent to allow up to 85,000 skilled workers annually to contribute to the US economy. The Chamber contends that the fee directly contradicts laws passed by Congress, exceeding statutory bounds on executive power over noncitizen entry.

Neil Bradley, the Chamber's executive vice president and chief policy officer, emphasised: "The new $100,000 visa fee will make it cost-prohibitive for US employers, especially start-ups and small and midsize businesses, to utilise the H-1B program, which Congress created expressly to ensure that American businesses of all sizes can access the global talent they need to grow their operations here in the US." The complaint further states that implementation would "inflict significant harm on American businesses," forcing them to dramatically increase labour costs or hire fewer highly skilled employees for whom domestic replacements are not readily available.

Background on H-1B visa programme

The H-1B visa is designed for high-skilled roles, particularly in tech, where domestic talent shortages persist. Nearly three-quarters of approvals go to Indian workers, with big tech firms as primary users. This year, Amazon topped the list with over 10,000 visas, followed by Tata Consultancy Services, Microsoft, Apple, and Google. California hosts the highest number of H-1B workers. The programme also supports critical non-tech roles like teachers and doctors.

Allocations occur via a lottery system, with critics arguing that spots often fill entry-level positions rather than senior roles requiring unique skills. While intended not to undercut US wages or displace workers, detractors claim companies exploit it by classifying jobs at lower skill levels, enabling lower pay despite workers' experience. About 70% of H-1B workers hail from India. Notable figures like Elon Musk, Satya Nadella of Microsoft, and Sundar Pichai of Alphabet began their US careers on H-1B visas.

Administration's justification, broader policies

The Trump administration defends the fee as a "necessary, initial, incremental step" to reform the H-1B programme, ensuring it recruits "great engineers" and top-paid talent rather than entry-level roles. It argues employers have replaced Americans with cheaper overseas labour, exploiting loopholes to suppress wages and "spam the system" with high-volume petitions. US Commerce Secretary Howard Lutnick supported this, saying companies must decide if a worker is "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." White House spokesperson Taylor Rogers added that the action discourages firms from "driving down American wages."

This policy aligns with Trump's border security and economic growth agenda, including pro-growth tax reforms, energy unleashing, and deregulation. However, the Chamber, while praising these efforts, warns that the fee contradicts free-market principles and could trigger a reverse "brain drain," diverting talent to rivals like China, Germany, Canada, or back to India. The administration has also introduced a "gold card" for fast-tracking certain immigrants with fees beginning at £1 million. Lutnick claimed "all of the big companies" support the fee.

Impacts on business, economy

The fee is seen as particularly burdensome for start-ups and mid-sized firms, representing an unsustainable cost per employee amid STEM graduate shortages. It could hinder US economic expansion, which needs more skilled workers to sustain growth. Tech leaders like Musk have criticised it, arguing the programme attracts global top talent essential for innovation. The Chamber, representing over three million businesses including Microsoft, Walmart, Exxon Mobil, Amazon, and Pfizer, seeks targeted reforms and collaboration with Congress and the administration for a fairer system.

This lawsuit underscores a rift between the traditionally Republican-aligned Chamber and the White House, amid broader corporate disquiet over policies labelled "Right Wing Socialism," such as tariffs via emergency powers and government stakes in firms like Intel. Critics, including MAGA activists, maintain the programme's exploitation harms American workers. As the case unfolds, it could reshape how the US attracts and retains the "world's best and brightest," potentially affecting competitiveness in the global marketplace.