The Trump administration is preparing to defend its new H-1B visa policy in court, following a wave of lawsuits challenging the recently imposed $100,000 fee on new visa applicants. The fee, which represents a dramatic increase from the standard processing costs of a few thousand dollars, has sparked controversy across educational, business, and political circles.At a White House press briefing on Thursday, Press Secretary Karoline Leavitt said that the H-1B system has been exploited in recent years, driving down wages for American workers. She said, “The administration will fight these lawsuits in court. The president’s main priority is to put American workers first and to strengthen our visa system. For far too long, the H-1B visa system has been spammed with fraud, and that’s driven down American wages. So the president wants to refine this system, which is part of the reason he implemented these new policies. These actions are lawful, they are necessary, and we’ll continue to fight this battle in court,” ANI reports.
Legal challenges mount
The announcement coincides with the United States Chamber of Commerce filing a legal challenge to the fee. Neil Bradley, Executive Vice President and Chief Policy Officer at the Chamber, argued that the fee violates provisions of the Immigration and Nationality Act, which require that visa fees reflect the actual costs incurred by the government in processing applications. He said, “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 programme, 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 United States.”Bradley further said that the fee threatens broader economic growth, stating, “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 actively backed these proposals to attract more investment in America. To support this growth, our economy will require more workers, not fewer.”In addition to the Chamber of Commerce, a coalition of unions, educational institutions, religious groups, and other organisations have filed lawsuits in federal courts in California and Washington, DC. These groups described the fee as “arbitrary and capricious” and argued that it would harm industries reliant on foreign skilled workers.
Implications for the IT sector
The H-1B visa, which allows companies to hire highly skilled foreign employees, is widely used by technology firms. Indian IT professionals constitute the largest group of H-1B recipients. The substantial increase in visa costs is expected to impact recruitment strategies for companies such as Amazon, Microsoft, and Google. The administration has yet to confirm whether the $100,000 fee will be collected upfront or annually, and it will be in addition to existing vetting charges.The US Chamber of Commerce has warned that the new fee could compel businesses to reduce participation in the H-1B programme or abandon it altogether, potentially constraining access to global talent and affecting growth across critical sectors.
Redefining the H-1B framework
The Trump administration frames the fee as part of a broader effort to prioritise American workers and ensure integrity in the H-1B system. Critics, however, see it as a barrier to the free flow of skilled labour that has long underpinned innovation in the technology and research sectors. With litigation underway, the courts will soon weigh whether the fee aligns with legislative requirements and economic considerations.The outcome of these cases could reshape not only visa policy but also the recruitment strategies of US companies that rely heavily on international talent, particularly in science, technology, engineering, and mathematics (STEM) fields.(with ANI inputs)
