Group Sues Trump Administration Over $100K H-1B Application Fee; U.S. Chamber of Commerce Objects to Fee

In reaction to the Trump administration’s $100,000 fee for new H-1B applications, several entities have pushed back, including a lawsuit filed by a group representing many organizations that rely in part on H-1B workers and a letter from the U.S. Chamber of Commerce to Treasury Secretary Howard Lutnick.

The group that has sued the Trump administration over the new fee argues that the “arbitrary and capricious” fee is unlawful, the required regulatory process was not followed, and the administration failed to consider the harm to entities across the United States that rely on H-1B workers, including not only high-tech companies but also schools, churches, hospitals, nonprofits, and businesses.

The group that filed the lawsuit includes the American Association of University Professors, U.A.W. International, Global Nurse Force, Global Village Academy Collaborative (a charter school association), and the Society of the Divine Word’s Chicago Province. Representatives for the plaintiffs include Democracy Forward, the Justice Action Center, and the South Asian American Justice Collaborative.

Citing studies showing that H-1B workers contribute to the U.S. economy, increase domestic employment, and raise wages, the U.S. Chamber of Commerce’s letter to Secretary Lutnick noted that a lack of availability of skilled H-1B workers also can cause companies to “outsource entire functions.” The Chamber said it is “particularly concerned about the administration’s new policy of imposing a $100,000 fee on new H-1B visas. This additional fee is easily 10 to 20 times (more for smaller companies) above the current fees. This would clearly limit the ability of many companies, especially smaller firms, to hire the skilled individuals they need to grow their businesses and the American economy.” The Chamber recommended that the Trump administration rescind its proclamation imposing the new fee and instead “work with Congress to look at reforms to the H-1B program that could accompany an increase in the number [of] visas annually available to meet the needs of our growing economy.”

Alternatively, if the Trump administration decides to keep the new fee, the Chamber recommended “clarifications” to address questions detailed in an attachment to its letter, including whether regulations will be published, how a “new” petition is defined, and what evidence will be required to determine that a particular H-1B beneficiary is not subject to the new fee.

This is posting is for informational purposes and is not intended as legal advice. If you require further assistance or advice relating to the above, please contact our Partner, Catherine Betancourt at catherine@flynnhodkinson.com.