U.S. Chamber of Commerce sues Trump administration over $100,000 H-1B visa fee - CNBC

U.S. Chamber of Commerce Files Lawsuit Against Trump Administration's H-1B Visa Fee

In a significant development, the U.S. Chamber of Commerce has filed a lawsuit against the Trump administration over its decision to impose a $100,000 fee on H-1B worker visas. The move is part of a broader effort by the administration to reform the country's complex and often contentious immigration system.

Background

The H-1B visa program is a popular pathway for highly skilled foreign workers to enter the United States and work in specialty occupations such as technology, healthcare, and finance. However, the program has long been plagued by controversy over issues such as worker exploitation, labor shortages, and the impact on American workers.

In January 2020, President Donald Trump announced plans to reform the H-1B visa program as part of a broader effort to address concerns about immigration and job market competition. The proposed changes included a $100,000 fee for new H-1B applications, which would be used to fund a new "merit-based" visa program aimed at attracting more highly skilled foreign workers.

The New Fee

The $100,000 fee was seen as a significant increase from the current application fees, which range from $325 to $410. The fee is intended to raise revenue for the U.S. government and fund the new merit-based visa program. However, critics argue that the increased cost will disproportionately affect small businesses and startups, which often rely on H-1B workers to fill labor gaps.

Lawsuit Filed

In response to the Trump administration's decision to impose the $100,000 fee, the U.S. Chamber of Commerce has filed a lawsuit challenging the constitutionality of the rule. The lawsuit, which was filed in federal court in Washington, D.C., argues that the fee is an unconstitutional tax on businesses and entrepreneurs.

Arguments Made by the U.S. Chamber of Commerce

The lawsuit makes several key arguments against the $100,000 fee:

• Constitutional concerns: The U.S. Chamber of Commerce argues that the fee is an unconstitutional tax on businesses and entrepreneurs, which would be a violation of their rights under the commerce clause of the Constitution.
• Disproportionate impact: The lawsuit claims that the increased cost will disproportionately affect small businesses and startups, which rely heavily on H-1B workers to fill labor gaps. This could have significant consequences for the U.S. economy, as these businesses are often innovative and job-creating.
• Lack of evidence: The lawsuit argues that there is no evidence to support the claim that a $100,000 fee will attract more highly skilled foreign workers or improve the competitiveness of the H-1B program.

Reactions from Business Groups

The news of the U.S. Chamber of Commerce's lawsuit has been met with support from several business groups, which have long advocated for reform of the H-1B visa program.

• National Retail Federation: The National Retail Federation has publicly expressed opposition to the $100,000 fee, citing concerns about its impact on small businesses and entrepreneurs.
• U.S. Business Alliance: The U.S. Business Alliance has also come out in support of the lawsuit, arguing that the fee is an unconstitutional tax on businesses.

Conclusion

The filing of this lawsuit marks a significant development in the ongoing debate over reform of the H-1B visa program. As the controversy surrounding the $100,000 fee continues to unfold, it remains to be seen how the Trump administration's proposal will ultimately play out.