U.S. Chamber of Commerce Sues Trump Administration Over $100,000 H-1B Visa Fee

WASHINGTON, D.C. - October 16, 2025 - The U.S. Chamber of Commerce has filed a federal lawsuit against the Trump administration, seeking to block a newly imposed $100,000 fee on H-1B visa applications. The legal challenge marks a major clash between the nation's largest business advocacy group and the White House over immigration policy, economic competitiveness, and executive authority.

The lawsuit, filed in the U.S. District Court for the District of Columbia, argues that the fee is unlawful, economically harmful, and exceeds the powers granted to the executive branch under federal law. The Chamber contends that the fee violates the Immigration and Nationality Act, which delegates visa fee-setting authority to Congress-not the president.

"The new $100,000 visa fee will make it cost-prohibitive for U.S. employers, especially start-ups and small and midsize businesses, to utilize the H-1B program," said Neil Bradley, Executive Vice President and Chief Policy Officer at the U.S. Chamber. "This program was created by Congress expressly to ensure that American businesses of all sizes can access the global talent they need to grow their operations here in the U.S."

Trump Defends Fee as "Commonsense Action"

President Donald J. Trump (R) has defended the fee as a necessary measure to protect American workers and restore integrity to the H-1B program. In his September 19 proclamation, Trump stated that the program had been "deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor."

"This is a commonsense action," Trump said during a press briefing. "For too long, companies have gamed the system to flood the market with cheap foreign labor. We're putting American workers first, and we're making sure that if companies want to hire from abroad, they pay a fair price."

The White House later clarified that the fee would not apply to existing visa holders or applications submitted before September 21. Employers may also request exemptions under certain conditions, though the criteria have not been publicly detailed.

Economic and Legal Fallout

The H-1B program, created by Congress in 1990, allows U.S. companies to temporarily employ foreign workers in specialty occupations such as engineering, information technology, and healthcare. The program is capped at 65,000 visas annually, with an additional 20,000 available for applicants holding advanced degrees from U.S. institutions.

Prior to the executive order, H-1B visa fees ranged from $2,000 to $5,000 depending on the size of the employer and the specifics of the application. The sudden jump to $100,000 represents a twentyfold increase for many companies, with particularly harsh consequences for startups and mid-sized firms already navigating tight labor markets and rising operational costs.

The Chamber's lawsuit warns that the fee could stifle innovation, hinder economic growth, and push talent to competing countries with more accessible immigration pathways. It also raises constitutional questions about the separation of powers, arguing that allowing the president to unilaterally impose such a fee would set a dangerous precedent.

"Most fundamentally, the President has no authority to unilaterally impose fees, taxes or other mechanisms to generate revenue for the United States, nor to dictate how those funds are spent," the lawsuit states.

A Broader Legal Front

The Chamber's lawsuit is one of several legal challenges now facing the administration's visa policy. Earlier this month, a coalition of labor unions, healthcare recruiters, academic institutions, and religious organizations filed a separate lawsuit in California, also seeking to block the fee. That suit argues the fee is arbitrary, capricious, and unconstitutional, particularly in its impact on hospitals, schools, and churches that rely on skilled foreign workers.

Both lawsuits underscore a growing tension between the administration's immigration agenda and the needs of the business and nonprofit sectors. While President Trump has positioned himself as a pro-business leader, this policy has drawn sharp criticism from some of the country's largest employers-including tech giants like Amazon, Meta, and Apple, which are among the top petitioners for H-1B visas.

Competitive Concerns

Industry analysts warn that the fee could lead to project delays, reduced innovation, and even offshoring of jobs that might otherwise be based in the U.S. The Chamber's complaint notes that countries like China are actively expanding their own skilled visa programs-such as the newly launched "K visa"-to attract global talent in science and technology.

"We're seeing a global race for talent," said Bradley. "If the U.S. becomes inhospitable to international professionals, we risk losing our competitive edge in critical industries."

President Trump, however, remains firm in his stance. "We're not going to let foreign workers take jobs that belong to Americans," he said. "If companies want to bring in talent, they can-but they'll pay for it."

What Comes Next

The case, formally titled U.S. Chamber of Commerce v. Department of Homeland Security, is expected to move quickly given the urgency of the issue and the potential economic fallout. The Chamber is seeking an injunction to halt implementation of the fee while the court considers the merits of the case.

As of now, the administration has not issued a formal legal response to the lawsuit. However, officials have signaled that they view the fee as a necessary corrective to what they see as an overused and underregulated visa program.

For businesses, universities, and advocacy groups across the country, the outcome of this legal battle could reshape not only the future of the H-1B program but also the broader landscape of U.S. immigration and workforce policy.