Trump, a Republican, and other critics of the H-1B program say it is abused by many companies who replace American workers with cheaper foreign labor. But business groups and many individual companies have said the visa program is needed to address a lack of qualified American workers for some jobs and to allow U.S. businesses to recruit top talent.
About 70 employers had paid the $100,000 fee on a total of 85 visa applications as of late February, according to court filings.
The fee is being challenged by the U.S. Chamber of Commerce, the largest U.S. business lobbying group, Democratic-led states and a coalition of unions and employers. Those lawsuits could be amended to challenge the rule proposed this week once it is finalized.
The lawsuits claim that Trump's power to restrict entry does not allow him to override the law that created the H-1B visa program. The states and groups that sued also say that the Homeland Security Department cannot impose fees, taxes or other means to generate revenue for the United States without permission from Congress.
The Trump administration has maintained that the fee is not a traditional tax and that courts have little power to question the president's authority to restrict entry into the country.
Amid Trump's broader immigration crackdown, employers last year registered for about 344,000 H-1B visas, down more than 25% from 2024 and fewer than half of the 759,000 visas sought in 2023, according to data from U.S. Citizenship and Immigration Services.
The Trump administration has also ordered enhanced vetting of H-1B applicants and proposed a new visa selection process that would favor higher-skilled and better-paid workers. Earlier in August, the Department of Homeland Security in a separate rule added fees of up to $4,500 to applications to extend the stay of H-1B workers or to transfer employees based in other countries to the United States.
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