Read the complete article from CBS News, U.S. Chamber of Commerce sues Trump administration over $100,000 H-1B visa fee.

According to the article, the U.S. Chamber of Commerce recently filed a lawsuit against the Trump administration, alleging that a $100,000 fee for new visas for highly skilled foreign workers is unlawful.

The lawsuit aims to block the charge for new H-1B visa applications, which the chamber said would inflict "significant harm" on American businesses by sharply increasing their labor costs or curtailing their ability to hire skilled employees.

The fee only applies to new petitions for this specific visa, not to existing H-1B visas or renewals.

The U.S. Chamber of Commerce’s Position

"The new $100,000 visa fee will make it cost-prohibitive for U.S. employers, especially startups 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 U.S.," Neil Bradley, executive vice president and chief policy officer at the chamber, said in a statement.

The U.S. Chamber of Commerce is the country's largest pro-business organization, representing nearly three million companies.

While the chamber concedes that U.S. presidents have significant authority over the entry of noncitizens into the country, Mr. Trump's September 19 proclamation regarding H-1B visas exceeds his authority and "blatantly contravenes the fees Congress has set" for the program, the group said.

According to the lawsuit, "The Proclamation is not only misguided policy; it is plainly unlawful." 

The Trump Administration’s Response

White House spokeswoman Taylor Rogers said the administration's actions are "lawful and are a necessary, initial, incremental step toward necessary reforms to the H-1B program." 

"President Trump promised to put American workers first, and his commonsense action on H1-B visas does just that by discouraging companies from spamming the system and driving down American wages, while providing certainty to employers who need to bring the best talent from overseas," Rogers added.

The History of the H-1B Visa

The H-1B visa was created by Congress in 1990 to attract foreign workers in technical fields like engineering, and it has been widely used in recent years by big technology companies to hire programmers and other technology specialists from abroad.

The lawsuit comes after a coalition of health care groups and labor unions earlier this month sued the Trump administration, alleging the H-1B fee is unlawful.

Discussion Questions

  1. In the context of U.S. immigration law, what is a “visa?” What is an “H-1B visa?”

    In U.S. immigration law, a visa is an official document issued by a U.S. embassy or consulate abroad that allows a foreign national to request permission to enter the United States at a port of entry (e.g., an airport or a land border). A visa does not guarantee entry into the United States; instead, it allows the holder to travel to a U.S. port of entry and request admission from a Customs and Border Protection officer.

    Visas are categorized based on the purpose and duration of the holder’s stay in the United States. First, a nonimmigrant visa is for people coming to the United States temporarily. Common types of nonimmigrant visas include:

    (a) Tourist visas (B-2s);
    (b) Student visas (F-1s);
    (c) work visas (H-1Bs, L-1s, etc.); and
    (d) Business visitor visas (B-1s).

    Nonimmigrant visas have expiration dates and do not lead to permanent residency.

    Second, an immigrant visa is for people who want to live permanently in the United States. Immigrant visas are often based on family sponsorship (e.g., the spouse of a U.S. citizen), employment-based petitions, and diversity visa lotteries. An immigrant visa leads to a green card, which represents lawful permanent residence.

  2. Describe the U.S. Chamber of Commerce.

    The U.S. Chamber of Commerce is the largest business lobbying organization in the United States. It represents the interests of millions of businesses, ranging from large corporations to small enterprises, and is a powerful voice in shaping U.S. economic and regulatory policy. The mission of the U.S. Chamber of Commerce is to promote and protect the interests of American businesses by advocating for free enterprise, lower taxes, fewer regulations, and pro-business policies at the federal, state, and local levels.

  3. In your reasoned opinion, what is the best argument for the new $100,000 H-1B visa fee? What is the best argument against such a fee?

    These are opinion questions, so student responses may vary.

    In your author’s opinion, aside from the revenue-raising aspect of the new $100,000 H-1B visa fee (As of the publication of this newsletter, the Trump administration has not specified where the funds generated from the fee will be directed), the best argument for it is to encourage the hiring of U.S. workers for the higher-paid, higher-skilled positions that might otherwise be filled by foreign workers.

    What remains to be seen is whether such positions can be filled predominantly or completely by U.S. workers. As indicated in Article 1, the H-1B visa was created by Congress in 1990 to attract foreign workers in technical fields like engineering, and it has been widely used in recent years by big technology companies to hire programmers and other technology specialists from abroad. Such efforts are often based on the non-availability of qualified U.S. workers.

    In your author’s opinion, the best argument against the new $100,000 H-1B visa fee is best represented by the quote included in Article 1 from Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce:

    “The new $100,000 visa fee will make it cost-prohibitive for U.S. employers, especially startups 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 U.S.”

    In other words, the $100,000 fee is essentially a tax that startups, small, and midsize businesses cannot afford, and will result in a talent deficit in the United States for certain highly skilled positions that the U.S. labor market is not otherwise providing.