Trump defends $100k H-1B fee amid fraud uproar
The Trump administration plans to defend its H-1B fee hike in court, saying it’s meant to curb visa fraud and safeguard American jobs, despite growing criticism from tech firms.
The Donald Trump administration is gearing up to defend in court its decision to impose a $100,000 fee on new H-1B visa petitions — a move stirring controversy and concern across the U.S. tech and hiring landscape.
According to White House Press Secretary Karoline Leavitt, the measure is part of a broader agenda to protect American workers and clean up what the administration describes as an H-1B system “spammed with fraud.” She stated that “the administration will fight these lawsuits in court,” asserting that the new policy is both “lawful” and “necessary.”
What’s being imposed
The proclamation signed on September 19 2025 took effect on September 21 for new H-1B petitions submitted from outside the U.S. It stipulates that employers must pay the $100,000 fee in addition to existing application and processing charges.
Notably:
- The fee does not apply to current H-1B visa holders or to petitions submitted before the effective date.
- It is described as a one-time fee for a new petition, not an annual recurring charge.
- There are exceptions — if the hiring of the worker is determined by the Secretary of Homeland Security to be in the national interest, the fee may be waived. Why the administration says it’s justified
Officials emphasise two key goals:
- Putting American workers first: The administration argues that the H-1B programme has been used to replace U.S. workers with lower-cost foreign labour, suppressing wages and displacing domestic talent.
- Curbing abuse and fraud: The White House claims that many H-1B petitions are fraudulent or misused, often by outsourcing firms that hire large numbers of foreign workers at lower wages while overlooking qualified U.S. workers.
Leavitt explained:
The president wants to refine this system and make it fairer for American workers.”
Who’s pushing back — and why
The U.S. Chamber of Commerce, along with multiple employer groups, unions, and advocacy organisations, has filed lawsuits challenging the legality of the fee. Their argument is that the charge exceeds the authority of the executive branch, goes beyond what existing immigration law allows, and risks hurting U.S. business competitiveness — especially for start-ups and small or mid-sized companies.
Chamber, criticised the move, saying:
employers, especially start-ups and small and midsize businesses, to utilise the H-1B programme, which was created to ensure American companies can access the global talent they need to grow.”
The ripple effects — from boardrooms to individuals
Across the tech sector and broader economy, the new rule has sent shockwaves through hiring and planning processes:
- Hiring strategy: Companies face a sudden, steep cost of sponsoring new H-1B workers. Many are now re-evaluating open roles, pausing sponsorships, or relying more on domestic candidates.
- Budgeting and forecasting: HR and finance departments are scrambling to assess how this new expense will affect operating budgets, especially amid ongoing talent shortages.
- Global talent flow: Skilled professionals overseas who once viewed the U.S. as a top destination now face uncertainty over affordability and accessibility.
- Human stories: Behind the policy are people — foreign engineers and data scientists with dreams of working in America, start-up founders who depend on niche global expertise, and U.S. workers concerned about fair competition.
For many, the debate is not just about policy but about opportunity — who gets a chance to contribute, innovate, and thrive in the world’s largest economy.
What comes next
The fee is currently set for a 12-month window, though extensions are possible depending on legal outcomes. Courts will now determine whether the fee violates existing immigration laws or stands as a legitimate policy move. Employers and foreign professionals alike are awaiting clarity on how the rules will apply to transfers, renewals, and special exemptions.
If upheld, the $100,000 fee could redefine the economics of the H-1B programme. Some experts believe it will drastically reduce the number of applications, particularly from smaller firms that cannot afford such costs. Larger corporations might continue hiring under the programme, but the overall diversity of applicants could shrink — limiting innovation and cross-border collaboration.
On the other hand, Trump administration officials argue that the move will create incentives for U.S. firms to hire and train domestic talent, potentially driving wage growth for American workers. Supporters of the policy say it will discourage misuse of the H-1B system and ensure that only companies with genuine, high-value talent needs participate.
The human perspective
Amid the policy battles and courtroom arguments, real people are caught in the middle. For thousands of skilled foreign professionals, the American dream is slipping further from reach. For small business owners, the rule means recalculating costs and, in some cases, shelving expansion plans. For U.S. workers, it raises hope for fairer competition but also concern about innovation slowing down.
At its heart, the $100,000 fee debate reflects a clash between two visions of America’s workforce — one prioritising global talent and growth, and another focused on protecting local jobs and wages. As the Trump administration prepares to defend its policy in court, both sides are watching closely, knowing that the outcome could reshape the country’s immigration and economic landscape for years to come.