'Unlawful': US Chamber of Commerce sues Trump administration over $100,000 H-1B visa fee

The US Chamber of Commerce has sued the Trump administration over its new policy of imposing a $100,000 fee on H-1B worker visas.

In a press release regarding the lawsuit, the Chamber said the new fee is unlawful since it “overrides provisions of the Immigration and Nationality Act that govern the H-1B program, including the requirement that fees be based on the costs incurred by the government in processing visas.”

Last month, President Donald Trump announced that he would increase the fee on the H-1B visa to $100,000 per year. The program allows US employers to hire foreign workers in speciality fields, and technology companies in particular rely heavily on workers who receive H-1B visas.

Critics of H-1Bs and other work visa programs say they are often used to replace American workers with cheaper foreign labour. But business groups and major companies have said H-1Bs are a critical means to address a shortage of qualified American workers.

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Neil Bradley, executive vice president and chief policy officer at the US Chamber said, ““The new $100,000 visa fee will make it cost-prohibitive for US employers, especially start-ups and small and midsize businesses, to utilize the H-1B program, which 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 US.”

Employers who sponsor H-1B workers currently typically pay between $2,000 and $5,000 in fees, depending on the size of the company and other factors.

Trump’s order bars new H-1B recipients from entering the United States unless the employer sponsoring their visa has made an additional $100,000 payment. The administration has said the order does not apply to people who already hold H-1B visas or those who submitted applications before September 21.

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Trump in his unprecedented order invoked his power under federal immigration law to restrict the entry of certain foreign nationals that would be detrimental to the interests of the United States.

He said that high numbers of lower-wage workers in the H-1B program have undercut its integrity and that the program threatens national security, including by discouraging Americans from pursuing careers in science and technology. He said the “large-scale replacement of American workers” through the H-1B program threatens the country’s economic and national security.