The U.S. Chamber of Commerce has filed a high-profile lawsuit against the Trump administration, challenging a new mandate that would require employers to pay a $100,000 fee when sponsoring new H-1B visa workers. The lawsuit, filed in federal court in Washington, D.C., argues that the executive order exceeds presidential authority and could severely disrupt a visa system that has long been governed by congressional legislation.
This legal challenge marks the first major lawsuit filed by the Chamber during former President Donald Trump’s second term. It represents a significant escalation in the business community’s ongoing tensions with the administration over immigration and labor policy.
A Controversial Move by the Trump Administration
In September, President Trump announced a sweeping immigration policy change imposing a $100,000 surcharge on employers seeking to sponsor new H-1B visa workers. The H-1B program allows U.S. companies—particularly in technology, engineering, and other specialized industries—to hire foreign professionals in specialty occupations that require advanced knowledge and technical expertise.
Currently, most employers pay fees ranging from $2,000 to $5,000 per H-1B petition, depending on company size and other factors. The new executive order would increase the cost by as much as 2,500%, making sponsorship prohibitively expensive for small and mid-sized firms.
While the Trump administration framed the new measure as a way to “prioritize American workers” and reduce dependence on foreign labor, the business community argues that it amounts to an unauthorized tax—and one that Congress never approved.
The Chamber’s Legal Argument
The U.S. Chamber of Commerce, representing over 300,000 businesses, asserts that the Constitution gives Congress—not the President—the sole authority to impose or modify fees related to immigration programs. The lawsuit contends that the $100,000 levy is not a regulatory fee but a substantive change to immigration law, violating the separation of powers principle.
“The President cannot rewrite immigration laws through unilateral executive action,” the Chamber said in its filing. “This unlawful surcharge threatens to upend a system that Congress designed and businesses have relied upon for decades.”
The Chamber’s lawsuit also warns that the new fee would create a “chilling effect” on hiring, forcing companies to reduce their use of H-1B visas or to offshore critical roles to remain competitive.
Impact on U.S. Employers and the Technology Sector
For decades, the H-1B program has been central to America’s innovation economy. Major tech firms such as Google, Microsoft, Amazon, and Apple have long relied on skilled foreign professionals—particularly in software engineering, AI, and data science—to fill roles for which domestic talent is scarce.
Each year, the U.S. government issues 65,000 standard H-1B visas and 20,000 additional visas for applicants with advanced degrees from U.S. universities. Demand for these visas routinely exceeds supply, with applications often surpassing 400,000 per year.
Industry groups have warned that a $100,000 fee could cripple this system. Smaller startups, research organizations, and universities would be especially hard-hit, as many operate on limited budgets and cannot afford such costs.
“This policy would effectively shut the door on skilled immigration,” said one tech industry representative. “It would push companies to move jobs overseas rather than bring talent here to the United States.”
Legal and Political Context
This lawsuit joins several others challenging recent immigration-related executive actions. Labor unions, religious groups, and advocacy organizations have also filed suits in California federal courts, arguing that Trump’s actions overstep the bounds of executive power.
The Chamber’s case could become a major test of how far a president can go in reshaping immigration and employment policy through executive proclamation rather than legislation.
Legal scholars note that previous administrations have used executive authority to modify visa policies during emergencies or for national security reasons—but never to impose a blanket financial surcharge on employers.
Critics of the H-1B program argue that it can undercut U.S. workers by enabling companies to import cheaper labor. However, most studies suggest that H-1B visa holders fill positions for which there are not enough qualified domestic applicants, and that their presence supports job creation and innovation within the broader economy.
The Broader Economic Implications
Business leaders fear that the policy could have ripple effects throughout the U.S. economy, reducing competitiveness, innovation, and job growth. Many companies view the H-1B program as essential for attracting global talent and maintaining America’s edge in science and technology.
If implemented, the fee could drive companies to outsource more work or establish offices abroad to access talent pools—undermining the administration’s stated goal of bringing jobs back to the U.S.
“The unintended consequence of this policy would be the opposite of what the administration claims to want,” one immigration policy expert noted. “Instead of creating jobs for Americans, it would incentivize companies to take their operations elsewhere.”
What Happens Next
The Chamber’s lawsuit will likely move quickly through the courts, as affected companies seek an injunction to block the rule before it takes effect. The outcome could define the scope of executive authority over immigration fees and employer obligations for years to come.
If the court sides with the Chamber, it could reaffirm Congress’s exclusive control over immigration-related fee structures. If not, the decision may set a precedent allowing future presidents to impose substantial costs or restrictions without legislative input.
Either way, the case underscores the growing tension between executive power and business interests, particularly when it comes to skilled immigration and economic growth.
As legal and immigration policies continue to evolve, employers and attorneys alike must stay informed about the latest developments in business immigration law. For those seeking legal opportunities in immigration, labor, or corporate law, explore the newest listings on LawCrossing.com—the most comprehensive legal job board connecting professionals with top firms and organizations across the country.