A coalition of industry associations has delivered a rare public rebuke to President Donald Trump’s recent decision to impose a $100,000 fee on new H-1B visa applications, news agency Bloomberg has reported.
In the letter, sent two weeks after Trump announced the change, groups representing semiconductor manufacturers, software companies and retailers warned that the fee threatens to “crimp a crucial talent pipeline of foreign skilled workers” and leave key positions across sectors unfilled.
The document implored the administration to pursue reform of the H-1B system in collaboration with industry, rather than layering on what it described as burdensome costs.
Signatories included prominent organizations such as the Business Software Alliance, SEMI (the semiconductor industry association), the National Retail Federation, the Entertainment Software Association and the Information Technology Industry Council.
The letter was careful to acknowledge Trump’s broader goals of encouraging U.S. investment, even as it cautioned against unintended consequences of the visa overhaul.
The industry objection comes in response to a White House proclamation unveiled on September 19, which mandates that any new petition for an H-1B visa filed after September 21 must be accompanied by a $100,000 fee. The administration has defended the policy as a tool to curb abuse of the system and protect American workers.
Immigration attorneys and policy analysts have already flagged significant uncertainty in how the policy will be applied, and whether it may deter companies from sponsoring foreign talent.
Some legal opinions suggest the fee could have a chilling effect, particularly on small- and mid-size firms that rely on the H-1B program to fill specialized roles. The proclamations and agency memos also appear to exempt existing H-1B holders and pending petitions filed before the deadline, but ambiguity remains over whether extensions or travel by current visa holders might trigger the new fee.
Beyond U.S. trade and technology firms, the change has echoed internationally. India’s IT industry association, NASSCOM, warned that the fee could disrupt operations of Indian firms that send talent to U.S. branches and unsettle the global talent market. Meanwhile, banking and financial firms are evaluating whether they may shift more work offshore, an outcome predicted by Bloomberg in coverage of potential moves by Wall Street firms.
The U.S. Chamber of Commerce has also joined the chorus of concern, urging the administration to rescind the proclamation. In a letter to Cabinet officials, it argued the fee “will impede economic growth,” harm startups and reduce the capacity of U.S.-educated foreign nationals to contribute to the domestic economy.
Legal challenges to the fee began almost immediately. A federal lawsuit filed in San Francisco by a coalition of unions, educators and healthcare staffing firms argues that Trump overstepped his authority by imposing such a fee without Congressional backing and violated procedural norms. Plaintiffs are seeking a court injunction to block the policy’s implementation. (Reuters)
As the dust settles, the letter from business groups underscores mounting pressure from U.S. corporate America to temper immigration changes.
If the administration continues to defend the $100,000 fee unchanged, it risks alienating key industries that rely on global talent to drive innovation, growth and competitiveness.
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