Photo by Nataliya Vaitkevich
WASHINGTON: The US Chamber of Commerce has filed a lawsuit against the Trump administration, challenging a new $100,000 (£74,000) fee imposed on H-1B visas for skilled foreign workers — a move the nation’s largest business lobby says will hurt American companies and innovation.
Neil Bradley, Chief Policy Officer at the pro-business organization, said the hefty new charge “will make it cost-prohibitive” for US employers to utilize the H-1B programme, which is widely used to recruit highly skilled professionals from abroad, especially in the technology sector.
President Donald Trump signed an executive order last month introducing the visa fee, claiming that the H-1B programme has been “abused” and exploited in ways that undermine American workers. The White House defended the policy as “a lawful and necessary first step toward long-overdue reform.”
According to the order, the new fee applies to all new H-1B visa applications and must be paid before entry into the United States is permitted. The administration says the fee will discourage excessive reliance on foreign labor.
Tech Leaders Push Back
The announcement provoked swift criticism from tech industry leaders, including Elon Musk, Satya Nadella of Microsoft, and Sundar Pichai, CEO of Google-parent Alphabet — all of whom began their US careers on H-1B visas. They argue that the programme is essential for attracting the best global talent to the US and maintaining its technological edge.
“The H-1B programme fuels innovation and growth,” said Musk in a social media post. “Making it inaccessible will only push talent elsewhere.”
Many H-1B recipients originate from India and China, filling key roles in software engineering, data science, and research. Tech companies argue that these positions cannot easily be filled by domestic workers due to a shortage of equivalent skills.
New “Gold Card” Visa Option
Alongside the new H-1B fee, Mr. Trump also announced a so-called “gold card” scheme, designed to fast-track residency for wealthy immigrants willing to pay fees starting at £1 million. The plan has been presented as an alternative path for foreign professionals or investors seeking long-term US status.
Chamber Warns of Economic Impact
In its complaint filed Tuesday, the Chamber of Commerce argued that the policy, if enacted, would “inflict significant harm on American businesses,” forcing them either to absorb much higher labor costs or reduce their hiring of skilled workers.
“The cost burden could cripple smaller companies and startups,” the Chamber stated, emphasizing that the policy threatens America’s competitiveness in key industries such as AI, cybersecurity, and biotech.
The organization, representing over three million businesses, also noted that while it has supported parts of Trump’s broader economic agenda — including tax reforms, deregulation, and energy expansion — it strongly opposes measures that restrict access to global talent.
Administration Defends Fee
US Commerce Secretary Howard Lutnick backed the administration’s stance, saying the new policy ensures fairer hiring practices for American workers.
“The company needs to decide — is the person valuable enough to warrant a $100,000-a-year payment to the government, or should they hire an American?” Lutnick said, defending the logic behind the fee.
White House spokesperson Taylor Rogers echoed this position, saying the rule prevents companies from “driving down American wages” through cheaper foreign labor.
Industry Reaction
While business groups have largely condemned the measure, some political supporters view it as a step toward rebuilding domestic employment. However, critics argue it could drive top global talent to competing economies such as Canada, the UK, or Australia — countries actively courting skilled workers with simplified immigration policies.
The lawsuit marks the latest clash between the Trump administration and corporate America, highlighting the ongoing tension between economic nationalism and global competitiveness.
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