A major legal battle is underway over the Trump administrations newly announced $100,000 fee on H-1B visa petitions, after the US Chamber of Commerce filed a lawsuit claiming the charge is illegal and economically damaging.
Filed on October 16, 2025, in the US District Court for the District of Columbia, the case — US Chamber of Commerce v. Department of Homeland Security — seeks to block the government from enforcing the controversial rule, which dramatically increases the cost of sponsoring skilled foreign workers.
What the New H-1B Fee Does
Under a proclamation issued in September 2025, employers filing new H-1B petitions for workers outside the United States must now pay a $100,000 supplemental fee in addition to existing filing costs.
The government claims this measure protects US jobs and reduces reliance on foreign labor. However, the new charge does not apply to renewals or to H-1B holders already living and working in the US.
Why the Chamber of Commerce Is Suing
Representing over three million American businesses, the US Chamber of Commerce argues that the administration’s new rule:
- Oversteps presidential authority, since Congress, not the executive branch, has the power to set immigration-related fees.
- Violates the Immigration and Nationality Act (INA), which allows fees only to cover administrative costs, not to create barriers or raise revenue.
- Harms US businesses and universities, particularly start-ups and small firms that depend on global talent.
In its complaint, the Chamber describes the new rule as an “unlawful tax on innovation” that threatens America’s competitiveness.
“This is not a fee—it’s a financial blockade that will drive talent and investment away from the United States,” said a Chamber spokesperson.
Impact on Businesses and Workers
The H-1B visa has long been a key pathway for US companies to hire highly skilled professionals, especially in technology, healthcare, engineering, and research.
Critics of the new rule warn that the $100,000 price tag could:
- Force smaller companies to halt international hiring plans;
- Push innovation and job creation to other countries like Canada or the U.K.;
- Reduce opportunities for foreign professionals, especially from India, who account for most H-1B recipients.
For many industries already struggling with skill shortages, this sudden policy shift introduces new uncertainty and costs that could ripple through the US economy.
The Legal Issues at Stake
The Chamber’s lawsuit is built around two major legal arguments:
- Lack of Statutory Authority: The lawsuit claims that the administration had no legal power to impose a fee of this size. Immigration law requires that fees be tied to the cost of processing petitions, not used to discourage participation or generate surplus revenue.
- Major Questions Doctrine: Under this constitutional principle, agencies cannot implement policies with major economic or political consequences without clear approval from Congress. The Chamber argues this rule applies squarely to the H-1B fee.
Legal experts believe the outcome could shape how future administrations regulate visa programs and set financial requirements for immigration benefits.
Broader Implications
The case goes beyond immigration—it could redefine the balance of power between the executive branch and Congress in shaping US labor and immigration policy.
Supporters of the lawsuit warn that if the government can impose massive visa fees without congressional approval, it could do the same in other areas of immigration, trade, or even taxation.
Meanwhile, global employers and immigration attorneys are watching closely. Several business associations and universities are expected to file amicus briefs supporting the Chamber’s challenge.
What Happens Next
The court is expected to review the Chamber’s request for a temporary injunction in November 2025. If granted, USCIS may be forced to pause implementation of the $100,000 fee until the case is resolved. If the court denies the injunction, companies sponsoring new H-1B workers may have to pay the additional amount at least temporarily while the legal fight continues, likely through appeals.
Given the far-reaching consequences, many analysts expect the case to eventually reach the US Supreme Court.
How Employers Should Prepare
Until the courts issue further guidance, immigration lawyers recommend that employers:
- Delay new H-1B filings if possible, or budget for the higher cost.
- Monitor USCIS updates for any exemptions, refunds, or procedural changes.
- Explore alternative visa options, such as the L-1 (intra-company transfer) or O-1 (extraordinary ability) categories.
- Seek legal advice before making large-scale hiring decisions involving international talent.
At the Crossroads of Immigration and Innovation
The lawsuit marks one of the most significant clashes between US businesses and the federal government over immigration policy in years.
At its core, it raises a fundamental question: Can America remain a global leader in innovation if access to skilled foreign talent becomes unaffordable?
As the legal battle unfolds, the outcome will determine not just the future of the H-1B program, but also how the United States defines its role in a global, knowledge-driven economy.
