US business lobby sues Donald Trump admin over 'misguided and unlawful' new H-1B visa fee

Washington: The US Chamber of Commerce has filed a lawsuit against the Donald Trump administration's decision to impose a $100,000 fee on all new H-1B visa petitions, describing it as "misguided policy and plainly unlawful" action that could cripple American innovation and competitiveness.

The lawsuit, filed Thursday in a district court in Columbia, challenges the administration's September 19 proclamation, 'Restriction on entry of certain nonimmigrant workers', arguing that it violates the Immigration and Nationality Act by overriding Congress' authority to regulate the H-1B visa programme.

The departments of Homeland Security and State, along with their secretaries, Kristi L Noem and Marco Rubio, respectively, have been named as defendants.

The exorbitant fee, up from the current level of around $3,600, would make it "cost-prohibitive for US employers, especially start-ups and small and midsize businesses to utilize the H-1B programme, which was created by Congress expressly to ensure that American businesses of all sizes can access the global talent they need to grow their operations here", said Neil Bradley, Executive Vice President and Chief Policy Officer at the US Chamber.

In its complaint, the business body said the proclamation is "not only misguided policy; it is plainly unlawful".

The president, it said, has significant authority over the entry of noncitizens into the US, but that authority is bounded by statute and cannot directly contradict laws passed by Congress.

"The proclamation does precisely that: It blatantly contravenes the fees Congress has set for the H-1B programme and countermands Congress’s judgment that the programme should provide a pathway for up to 85,000 people annually to contribute their talents to the United States for the betterment of American society," it stated.

The proclamation exceeds the president’s lawful authority, the complaint underlined.

Bradley said the Chamber has actively backed Trump's proposals to attract more investment in America, but to support this growth, the US economy will "require more workers, not fewer".

Tens of thousands of highly skilled people in specialised fields boost the American economy each year after obtaining H-1B status. These workers allow businesses of all sizes, in industries across the economy, to innovate and grow. The resulting innovations lead to more American jobs, higher wages, and new products and services that improve the quality of life for all Americans.

The Chamber's complaint contends that the new proclamation "upends" a carefully balanced statutory framework.

"If implemented, that fee would inflict significant harm on American businesses, which would be forced to either dramatically increase their labour costs or hire fewer highly skilled employees for whom domestic replacements are not readily available," it said.

According to the Chamber, such restrictions would also hand an economic advantage to America’s 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".

In September, President Donald Trump signed the proclamation, raising the fee for H1-B visas to a staggering USD 100,000 (approx INR 88 lakhs) annually, in a move that could adversely impact Indian professionals on visas in the US.

Indians make up an estimated 71 per cent of all approved H-1B applications in recent years, according to the US Citizenship and Immigration Services (USCIS). Companies pay to sponsor H-1B applicants.

While the US tightens its visa regime, China has recently announced a new work permit called the K-Visa under which qualified professionals from across the world can come to the country and explore work opportunities. The K-Visa is aimed at attracting young science and technology talent and does not require a domestic employer or entity to issue an invitation.

The K-Visa category is in addition to its existing 12 ordinary visa types, available to eligible science and technology professionals. Compared to the existing visa types, K visas will offer more convenience to holders in terms of the number of permitted entries, validity period, and duration of stay.