The Trump administration is preparing to defend its new H-1B visa policy in federal court amid growing opposition from industry groups, unions, and educational institutions. The policy imposes a $100,000 annual fee on new visa applicants and has prompted lawsuits in California and Washington, D.C., challenging its legality under U.S. immigration law.
White House Press Secretary Karoline Leavitt said the measure aims to “prioritize American workers and curb fraud.” She added, “The administration will fight these lawsuits in court. The president’s main priority has always been to put American workers first and strengthen our visa system.”
The H-1B visa program, which allows U.S. companies to hire skilled foreign professionals—particularly in technology and engineering—has long been politically contentious. Successive administrations have debated balancing domestic job protection with the need for global talent.
Supporters of the new fee argue it addresses systemic abuse. “For far too long, the H-1B visa system has been spammed with fraud, and that’s driven down American wages,” Leavitt said. “These actions are lawful, they are necessary, and we’ll continue to fight this battle in court.”
However, business leaders warn the fee could have major economic consequences. The U.S. Chamber of Commerce, a leading plaintiff, called the fee “arbitrary, capricious, and unlawful.” Neil Bradley, the Chamber’s Executive Vice President, said, “The $100,000 visa fee will make it cost-prohibitive for U.S. employers—especially start-ups and small and midsize businesses—to access global talent. This move undercuts American competitiveness.”
Unions and advocacy groups have also joined the lawsuits, arguing the administration overstepped its authority. Complaints claim the rule violates the Immigration and Nationality Act, which requires visa fees to reflect government processing costs—not punitive charges aimed at reshaping the labor market.
The policy is expected to disproportionately affect Indian IT professionals, who represent the largest group of H-1B visa recipients. Analysts say the fee, combined with existing costs, could price out mid-level applicants and deter companies from sponsoring foreign workers.
“This measure risks freezing out skilled international talent at a time when U.S. firms need it most,” said a senior immigration attorney in New York. For Indian outsourcing companies and U.S. tech firms reliant on global talent, additional costs could total millions annually.
While the White House defends the reform as protecting domestic labor, economists warn it may slow innovation and reduce America’s competitive edge in emerging technologies. Legal experts note that the coming months will determine whether the fee survives judicial scrutiny.
With cases pending across multiple federal courts, the dispute over the H-1B program could shape the future of global mobility and the U.S. innovation economy.
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