Highlights:
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Chamber challenges Trump administration’s H-1B fee hike as unlawful.
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Small and midsize businesses at risk of losing access to skilled foreign workers.
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Fee could slow US innovation and economic growth.
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Indian professionals, 71% of H-1B holders, likely most affected.
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Chamber stresses Congress must set visa fees, not the executive branch.
The US Chamber of Commerce has filed a lawsuit against the Trump administration over its decision to impose a $100,000 fee on new H-1B visa petitions. The organization called the policy “misguided” and “plainly unlawful,” arguing that it threatens American innovation, competitiveness, and the ability of US businesses to hire skilled global talent.
Chamber Challenges Trump Administration’s H-1B Fee Policy
The lawsuit, filed on October 16, 2025, in the District Court for the District of Columbia, targets the administration’s September 19 proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers.” The Chamber claims the proclamation violates the Immigration and Nationality Act by exceeding the president’s authority and infringing on Congress’s exclusive power to regulate visa programs.
The Departments of Homeland Security and State, along with their respective secretaries Kristi L. Noem and Marco Rubio, are named as defendants. According to the Chamber, the proposed $100,000 fee represents a dramatic increase from the current average H-1B filing cost of roughly $3,600. This hike, the Chamber argues, would make it nearly impossible for small and midsize businesses to afford hiring skilled foreign professionals.
Chamber Warns of Economic Impact
Neil Bradley, executive vice president and chief policy officer of the Chamber, said: “The fee would make it cost-prohibitive for US employers, especially start-ups and small and midsize businesses, to utilize the H-1B program, which Congress created precisely to ensure American companies can access the global talent needed to grow operations domestically.”
The Chamber emphasized that while the president has authority to regulate immigration and entry, that authority cannot conflict with congressional laws. “The proclamation blatantly contravenes the fees Congress has established for the H-1B program and undermines the judgment that the program should allow up to 85,000 skilled individuals annually to contribute to the US economy,” the Chamber stated.
Bradley noted that the Chamber has historically supported President Trump’s economic growth policies but warned that restricting access to skilled foreign labor could hinder, rather than strengthen, US economic growth. “The American economy will require more workers, not fewer, to sustain the expansion we all want,” he said.
H-1B Visa Holders and Innovation at Risk
Each year, tens of thousands of professionals enter the US under H-1B visas, working in specialized fields critical to technological and economic development. The Chamber warned that the proposed fee structure would disrupt this balance, forcing companies to raise labor costs or limit hiring. Either outcome could reduce innovation and competitiveness in the US economy.
The lawsuit also points to potential benefits for foreign competitors. “Foreign employers will eagerly absorb the highly skilled talent blocked from the US. That’s a competitive edge America may never reclaim,” the Chamber said.
Indian professionals, who constitute approximately 71 percent of H-1B visa holders, are expected to face the most significant impact. Meanwhile, China has introduced a K-Visa program aimed at attracting international science and technology talent with flexible entry and work options. This intensifies global competition for skilled workers at a time when the US is considering more restrictive measures.
Chamber Seeks Legal Remedy
The legal challenge by the Chamber could determine not only the fate of the proposed H-1B fee but also the broader direction of US immigration policy and its impact on the country’s global leadership in technology and innovation. The Chamber’s lawsuit highlights the potential consequences for US businesses and workers if access to skilled foreign labor is severely restricted.
As the case progresses, stakeholders across industries are closely watching, recognizing that the outcome could shape hiring practices, innovation strategies, and America’s competitiveness in the global economy. The Chamber asserts that Congress, not the executive branch, must set fees and rules for programs like H-1B, reinforcing the principle of legislative authority over immigration policy.
