• The U.S. Chamber of Commerce has filed a lawsuit challenging a new $100,000 fee on H-1B visas.
• The fee is viewed as unlawful and detrimental to American businesses, particularly startups and SMEs.
• The lawsuit emphasizes that the fee contradicts existing immigration law established by Congress.
• Critics argue this move could lead to a "brain drain" of talented foreign professionals.
• The lawsuit marks a notable rift between corporate America and the Trump administration.

The U.S. Chamber of Commerce, representing 300,000 businesses, has filed a lawsuit against the Trump administration, challenging a significant $100,000 fee on new H-1B visa applications for highly skilled foreign workers. This is the first lawsuit by the Chamber against the Trump administration since he began his second term in January. The suit claims that the fee exceeds the president's authority and disrupts the complex visa system established by Congress, according to Reuters and South China Morning Post.

The H-1B visa program is crucial for U.S. employers seeking to hire foreign workers in specialized fields, particularly in technology sectors. The Chamber argues that the new fee will make it "cost-prohibitive" for many employers, particularly small and mid-sized businesses, to utilize the H-1B program effectively. Neil Bradley, the Chamber's Chief Policy Officer, stated that many members are preparing to reconsider their hiring practices in light of this financial burden, as highlighted by CBS News and BBC.

The lawsuit contends that this fee does not comply with the Immigration and Nationality Act (INA), which mandates that visa fees reflect the government's administrative costs. This legal action follows a similar lawsuit filed in California by various groups, including unions and employers, contesting the legality of the fee, as noted by India Times and India Times.

Industry leaders assert that H-1B visas are vital for maintaining competitive innovation in technology. Executives, such as Elon Musk and Sundar Pichai, have benefited from the program, underscoring its importance in attracting global talent. Critics from the administration, however, argue that the program has been abused and has led to a replacement of American workers, a stance that is sparking significant debate regarding immigration policies and their economic implications, according to India Times and India Times.