White House Faces Lawsuits Over $100K H-1B Visa Fee Increase
The Trump administration is preparing to defend its new H-1B visa policy in court, facing several lawsuits that contest the $100,000 fee levied on new visa applicants. On Thursday, Karoline Leavitt asserted that the H-1B system has been exploited, resulting in a decline in American wages. She stated that the policy seeks to prioritize American workers and reduce fraud in the H-1B system. “The administration will vigorously contest these lawsuits in court. The president has consistently prioritized putting American workers first while also aiming to enhance our visa system. For an extended period, the H-1B visa system has been plagued by fraud, which has resulted in a decline in American wages. The president aims to enhance this system, which contributes to the rationale behind the implementation of these new policies. These actions are lawful, they are necessary, and we’ll continue to fight this battle in court,” Leavitt told.
Leavitt’s remarks arise as the US Chamber of Commerce initiates a legal challenge against the administration’s $100,000 fee imposed on H-1B visa petitions. In the meantime, unions, employers, and religious organizations have initiated legal action in federal courts in California and Washington, DC, contending that the fee is illegal and detrimental to US industries. The Chamber’s litigation contends that the new fee is unlawful as it contravenes the provisions of the Immigration and Nationality Act that regulate the H-1B program, including the stipulation that fees must reflect the costs incurred by the government in processing visas, as stated in an official statement by the CoC.
“The new $100,000 visa fee will make it cost-prohibitive for US employers, especially start-ups and small and midsize businesses, to utilize 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,” stated Neil Bradley. “President Trump has embarked on an ambitious agenda of securing permanent pro-growth tax reforms, unleashing American energy, and unravelling the overregulation that has stifled growth. The Chamber and our members have consistently supported these proposals aimed at drawing increased investment to America. To support this growth, our economy will require more workers, not fewer,” his statement added. A coalition of unions, educators, religious groups, and other organizations has notably filed the first major lawsuit against the imposed visa fees, describing them as “arbitrary and capricious.”
The H-1B visa permits companies to employ skilled foreign workers. The heightened fees are poised to impact the IT sector, especially Indian IT professionals, who represent the largest cohort obtaining H-1B visas. The newly established annual fee of USD 100,000 marks a substantial rise from the existing H-1B processing expenses, which generally range in the thousands of dollars. Companies will incur this fee alongside current vetting charges, as the administration continues to assess whether to collect the total amount upfront or on an annual basis. The US Chamber of Commerce cautions that the fee will compel businesses to reduce or forgo the H-1B program. Tech giants such as Amazon, Microsoft, and Google are anticipated to be impacted.
