White House defends $100,000 H-1B fee, calls hike vital to protect interests of US workers

The Donald Trump administration on Thursday vowed to fight all legal challenges to its new H-1B visa policy, defending the move as essential to protecting American jobs and curbing fraud in the system. The decision comes a day after the U.S. Chamber of Commerce filed a lawsuit contesting the administration’s controversial $100,000 fee on new H-1B applications.

White House Press Secretary Karoline Leavitt said the administration “stands firm” on the measures signed by President Trump last month, which took effect on October 6. “The administration will fight these lawsuits in court. The president’s main priority has always been to put American workers first and to strengthen our visa system,” Leavitt told reporters.

“For far too long, the H-1B visa system has been spammed with fraud, and that’s driven down American wages. So the president wants to refine this system, which is part of the reason he implemented these new policies. These actions are lawful, they are necessary, and we'll continue to fight this battle in court,” she added.

The White House maintains that the fee hike and related reforms will discourage U.S. companies from hiring cheaper foreign labour for specialised roles and instead prioritise qualified domestic workers. “The president believes American workers deserve fair wages and job opportunities. The reforms in the H-1B system are designed to close loopholes that have allowed companies to take advantage of the programme,” Leavitt said.

Chamber of Commerce lawsuit

The U.S. Chamber of Commerce has filed suit in the U.S. District Court for the District of Columbia, arguing that the new policy violates provisions of the Immigration and Nationality Act (INA). “The Chamber’s litigation argues that the new fee is unlawful because it overrides provisions of the Immigration and Nationality Act that govern the H-1B programme, including the requirement that fees be based on the costs incurred by the government in processing visas,” the organisation said in a statement.

The Chamber warned that the fee could push many companies to withdraw from the H-1B programme entirely. “Many members of the U.S. Chamber are bracing for the need to scale back or entirely walk away from the H-1B programme, to the detriment of their investors, customers, and their own existing employees,” the group said.

The Trump administration has repeatedly accused employers of abusing the visa system to import low-cost labour. Officials argue that the reforms are aimed at restoring integrity to the programme and ensuring U.S. companies first look to hire local talent.

The H-1B programme allows American employers to recruit foreign professionals in speciality fields such as technology, engineering, and medicine. Roughly 70 per cent of H-1B visa holders are from India.

(With inputs from agencies)