U.S. Chamber of Commerce sues to block Trump H-1B visa changes
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U.S. Chamber of Commerce. Photo: Bill Clark/CQ Roll Call
The U.S. Chamber of Commerce on Thursday sued to block the Trump administration's plan to charge a $100,000 fee for H-1B visas, a move businesses say could deprive them of skilled foreign workers.
Why it matters: For all of the actions taken by the administration that pressured corporate America, from DOGE to tariffs, the proposed visa changes proved a bridge too far for the influential business lobby.
The big picture: Big businesses have been extremely reluctant to pursue litigation over Trump's policies, even as behind the scenes new regulations and orders are causing widespread discontent.
- Trump's tariffs, for example, were challenged in court by a group of small businesses.
What they're saying: The Chamber, in a petition for an injunction, said the new fees would keep many American businesses from being able to hire talented foreign workers.
- "These harms to American businesses will also be a boon to America's economic rivals, who will surely welcome the talent no longer able to accept work in the United States. That is a competitive edge that foreign employers might never cede back," the group wrote.
Of note: This is the first suit filed against the Trump administration this year by the Chamber.
- The group sued the Biden White House on multiple occasions, frequently arguing the administration overstepped its statutory authority.
Catch up quick: In a September executive order, Trump said that employers hiring workers through the H-1B visa program would be subject to a $100,000 fee.
- Prior to the announcement, it cost about $3,600 to sponsor a visa holder, and companies large and small said it was a crucial mechanism for hiring hard-to-find tech and science talent. Nonprofits like universities and hospitals also hire H-1B visa holders.
- The announcement set off a panic inside American companies and among foreign workers.
- Many small businesses and startups said they're unable to pay such a fee. Bigger companies were considering offshoring the work, lawyers told Axios recently.
Zoom in: The Chamber, which represents around 300,000 members including big and small employers, argues that the order is unlawful, and directly contradicts laws passed by Congress.
- They're asking the court to stop the fee from taking effect.
- The suit was filed in the U.S. district court in Washington, D.C. against the Department of Homeland Security and State Department. DHS secretary Kristi Noem and Secretary of State Marco Rubio are named defendants.
For the record: "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," White House spokeswoman Taylor Rogers said in a statement.
- "The Administration's actions are lawful and are a necessary, initial, incremental step towards necessary reforms to the H-1B program."
Flashback: The Chamber also sued over this issue during the first Trump administration, arguing that a ban on entry for H-1B visa holders the White House sought to impose in 2020 was illegal.
- In that case, a federal judge ruled that the administration overstepped its authority.
Editor's note: This story has been updated with a White House statement.
