Washington: The US Chamber of Commerce has filed a lawsuit challenging the Trump administration's decision to impose a USD 100,000 fee on all new H-1B visa petitions, calling it a “misguided and plainly unlawful” policy that could undermine American innovation and competitiveness.

Filed Thursday in a Columbia district court, the lawsuit targets the September 19 proclamation titled 'Restriction on entry of certain nonimmigrant workers,' arguing it violates the Immigration and Nationality Act by overriding Congress' authority to regulate the H-1B visa program. Departments of Homeland Security and State, along with their secretaries Kristi L. Noem and Marco Rubio, are named as defendants.

Neil Bradley, Executive Vice President and Chief Policy Officer at the US Chamber, said the hike from around USD 3,600 to USD 100,000 would make it prohibitively expensive for US employers, particularly start-ups and small and midsize businesses, to access global talent under the H-1B program. “This proclamation blatantly contravenes the fees Congress has set and undermines the pathway for up to 85,000 skilled workers annually to contribute to the US economy,” he added.

The Chamber highlighted that tens of thousands of skilled professionals, many from India, drive innovation, create jobs, and contribute to economic growth. The complaint warns that the new fee could force businesses to raise labor costs or hire fewer highly skilled employees, giving foreign competitors an advantage.

Indians account for an estimated 71 per cent of recent approved H-1B applications. The US move contrasts with China's new K-Visa, which aims to attract global science and technology professionals without requiring a domestic employer sponsor.