US Chamber Sues Trump Administration Over H-1B Fee Hike

Washington, Oct 17 (PTI) The US Chamber of Commerce has initiated legal action against the Trump administration, challenging its decision to levy a USD 100,000 fee on new H-1B visa petitions. The chamber terms this decision as a "misguided policy and blatantly unlawful," expressing concerns over its potential impact on American innovation and competitiveness.

The lawsuit was filed on Thursday in a district court in Columbia. It contests the administration's September 19 proclamation, titled 'Restriction on entry of certain nonimmigrant workers,' on the grounds that it contravenes the Immigration and Nationality Act by usurping Congress's authority to regulate the H-1B visa program.

The lawsuit names the departments of Homeland Security and State, along with their secretaries, Kristi L Noem and Marco Rubio, as defendants. The dramatic fee increase, from approximately USD 3,600 to USD 100,000, threatens to make the H-1B program financially inaccessible for US employers, especially for startups and small-to-midsized businesses. Neil Bradley, Executive Vice President and Chief Policy Officer at the US Chamber, argues that Congress established the H-1B program to ensure businesses of all sizes could access global talent for expansion.

The chamber's complaint asserts that the proclamation is not only flawed policy but also clearly unlawful. While the president does have considerable authority over noncitizen entry into the US, this authority is legally constrained and cannot directly contravene Congressional legislation.

According to the complaint, the proclamation does just that by flouting the fees Congress set for the H-1B program. It disrupts Congress's intention to enable 85,000 individuals annually to contribute to the US, enhancing American society. The complaint emphasizes that the proclamation overextends presidential authority.

Bradley noted that while the Chamber has supported Trump's investment attraction strategies in America, the US economy needs more workers, not fewer, to maintain growth. Each year, tens of thousands of highly skilled individuals in specialized fields bolster the US economy via H-1B status, fostering innovation and growth. Consequently, these innovations catalyze job creation, higher wages, and the introduction of new products and services that elevate life quality for all Americans.

The Chamber's complaint argues that the new proclamation disrupts a meticulously balanced statutory framework. The exorbitant fee, if enacted, would harm American businesses significantly by inflating labor costs or reducing the hiring of highly skilled personnel for whom domestic alternatives are scarce.

These restrictions would likely provide a competitive advantage to America's rivals, who would eagerly recruit the talent now unable to work in the United States. It posits that foreign employers may never relinquish this competitive edge. President Trump signed the proclamation in September, substantially increasing H-1B visa fees which could significantly impact Indian professionals in the US.

Indians represent an estimated 71% of all approved H-1B applications in recent years, according to US Citizenship and Immigration Services (USCIS), with companies typically covering sponsorship costs. Amid the US's tightened visa regulations, China recently unveiled a K-Visa program, designed to attract global science and technology professionals without requiring a host employer or entity.

The K-Visa category complements China's existing 12 ordinary visa categories and offers additional benefits in terms of permissible entries, validity, and duration of stay for qualified science and technology talent.

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