TOI correspondent from Washington: Corporate America, for long pally with Republican dispensations in Washington, is suing the Trump administration over the $100,000 annual fee for H1B visa, saying the astronomical hike in charges is misguided, unlawful, and detrimental to US businesses.
In a federal lawsuit filed before the U.S. District Court for the District of Columbia on Thursday, the U.S Chamber of Commerce, which counts giants like Microsoft, WalMart, Exxon Mobil, Amazon, and Pfizer among its members, said the Trump administration has exceeded its statutory authority in announcing the new fee and sought an immediate injunction to block the policy's enforcement.
The lawsuit targets a presidential proclamation issued last month, titled "Restriction on Entry of Certain Nonimmigrant Workers," which fundamentally re-engineers the financial structure of the H-1B program. Under the new rule, new H-1B visa petitions, primarily for foreign workers outside the US (about 70 percent of whom come from India), must be accompanied or supplemented by a $100,000 payment.
Arguing that the new fee blatantly contravenes the Immigration and Nationality Act (INA) which governs the H-1B program, the lawsuit contends that a $100,000 tab countermands Congress's judgment that the program should provide a pathway for up to 85,000 people annually to contribute their talents to the United States. By unilaterally imposing such an extreme financial barrier, the Chamber argues that the President has unlawfully usurped legislative authority designed to manage the flow of skilled workers.
While the Chamber is dominated by corporate giants, Neil Bradley, its Executive Vice President and Chief Policy Officer stressed the disproportionate harm the fee will inflict on smaller enterprises. "The new $100,000 visa fee will make it cost-prohibitive for U.S. employers, especially start-ups and small and mid-sized businesses, to utilize the H-1B program," Bradley said in a statement. For many start-ups, a $100,000 fee per new employee represents an unsustainable burden that will force them to forgo H1Bs at a time when there is a shortage of qualified STEM graduates in America.
The Trump administration has however vigorously defended the measure, asserting it a "necessary, initial, incremental step" aimed at ensuring the visa is used strictly to recruit "great engineers" and highest-paid talent, rather than for entry-level positions. The policy is rooted in the administration’s core argument -- drummed by some MAGA activists -- that some employers have exploited H-1B loopholes to suppress American wages, displace U.S. workers, and "spam the system" by filing high volumes of petitions for lower-skilled roles.
Critics warn though that the punitive financial barrier risks triggering a reverse "brain drain," pushing highly sought-after foreign talent toward economic rivals abroad. China and Germany among other nations have opened their doors to foreign talent, and many Indian professionals navigating the uncertain H1B scenario are looking to peel off to neighboring Canada or return home. The Chamber asserts that diminishing the U.S ability to attract and retain the "world's best and brightest" threatens the competitiveness and expansion of American companies in the global marketplace.
The lawsuit represents a remarkable rift between the Chamber and the Republican White House – allies for long – amid growing disquiet in corporate circles over what some have dubbed as “Right Wing Socialism.” Conservative commentators are flagging actions like President Trump using emergency powers to impose tariffs, the government taking a stake in private corporations like Intel, and hiking H1B fees, saying the moves go against the spirit of free market enterprise that has long characterized the United States.
In a federal lawsuit filed before the U.S. District Court for the District of Columbia on Thursday, the U.S Chamber of Commerce, which counts giants like Microsoft, WalMart, Exxon Mobil, Amazon, and Pfizer among its members, said the Trump administration has exceeded its statutory authority in announcing the new fee and sought an immediate injunction to block the policy's enforcement.
The lawsuit targets a presidential proclamation issued last month, titled "Restriction on Entry of Certain Nonimmigrant Workers," which fundamentally re-engineers the financial structure of the H-1B program. Under the new rule, new H-1B visa petitions, primarily for foreign workers outside the US (about 70 percent of whom come from India), must be accompanied or supplemented by a $100,000 payment.
Arguing that the new fee blatantly contravenes the Immigration and Nationality Act (INA) which governs the H-1B program, the lawsuit contends that a $100,000 tab countermands Congress's judgment that the program should provide a pathway for up to 85,000 people annually to contribute their talents to the United States. By unilaterally imposing such an extreme financial barrier, the Chamber argues that the President has unlawfully usurped legislative authority designed to manage the flow of skilled workers.
While the Chamber is dominated by corporate giants, Neil Bradley, its Executive Vice President and Chief Policy Officer stressed the disproportionate harm the fee will inflict on smaller enterprises. "The new $100,000 visa fee will make it cost-prohibitive for U.S. employers, especially start-ups and small and mid-sized businesses, to utilize the H-1B program," Bradley said in a statement. For many start-ups, a $100,000 fee per new employee represents an unsustainable burden that will force them to forgo H1Bs at a time when there is a shortage of qualified STEM graduates in America.
The Trump administration has however vigorously defended the measure, asserting it a "necessary, initial, incremental step" aimed at ensuring the visa is used strictly to recruit "great engineers" and highest-paid talent, rather than for entry-level positions. The policy is rooted in the administration’s core argument -- drummed by some MAGA activists -- that some employers have exploited H-1B loopholes to suppress American wages, displace U.S. workers, and "spam the system" by filing high volumes of petitions for lower-skilled roles.
Critics warn though that the punitive financial barrier risks triggering a reverse "brain drain," pushing highly sought-after foreign talent toward economic rivals abroad. China and Germany among other nations have opened their doors to foreign talent, and many Indian professionals navigating the uncertain H1B scenario are looking to peel off to neighboring Canada or return home. The Chamber asserts that diminishing the U.S ability to attract and retain the "world's best and brightest" threatens the competitiveness and expansion of American companies in the global marketplace.
The lawsuit represents a remarkable rift between the Chamber and the Republican White House – allies for long – amid growing disquiet in corporate circles over what some have dubbed as “Right Wing Socialism.” Conservative commentators are flagging actions like President Trump using emergency powers to impose tariffs, the government taking a stake in private corporations like Intel, and hiking H1B fees, saying the moves go against the spirit of free market enterprise that has long characterized the United States.
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