US advocacy group sues Trump administration over H-1B fee hike
What's the story
The US Chamber of Commerce has filed a lawsuit against the Trump administration over the recently imposed $100,000 annual fee for new H-1B visas. The suit was filed in Washington, D.C., on Thursday and seeks a court declaration that President Donald Trump exceeded his executive powers by imposing this fee. It also requests the court to prevent federal agencies from enforcing this order.
Visa details
Fee aimed at reducing foreign workers influx
The H-1B visa program allows US employers to hire foreign workers for specialized jobs that are hard to fill domestically. The tech industry is the biggest user of this program, with most beneficiaries being from India. However, it also covers positions in the education and healthcare sectors. Last month, the Trump administration announced the new fee, claiming US companies were replacing American workers with cheaper foreign labor.
Legal challenge
New fee violates existing immigration laws: Chamber
The Chamber's lawsuit contends that the new fee violates existing immigration laws, which state that all visa-related fees should only reflect the government's processing costs. It argues, "The President has significant authority over the entry of noncitizens into the United States, but that authority is bounded by statute and cannot directly contradict laws passed by Congress." The Department of Homeland Security, the State Department, and their cabinet secretaries are named as defendants in this case.
Business impact
Fee could raise labor costs for companies
Prior to this order, most H-1B applications cost less than $3,600. The Chamber has warned that the new fee would either force companies to raise labor costs or cut down on hiring skilled foreign workers for whom domestic replacements are not readily available. "If implemented, that fee would inflict significant harm on American businesses," the complaint states.
Program importance
H-1B program critical to US technology hiring
The H-1B program, which works on a lottery system, has been key to US technology hiring for years. Amazon received over 10,000 H-1B visas this year alone. Other major companies such as Tata Consultancy Services (TCS), Microsoft, Apple, and Google also availed of this program. California continues to be the top destination for H-1B workers in the country.