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A federal judge rejected the U.S. Chamber of Commerce’s challenge to President Trump’s $10,000 fee on new H-1B visas for skilled foreign workers. Judge Howell ruled the fee falls under Trump’s broad immigration powers, dismissing the Chamber’s claims that it violates federal law and will harm businesses. The Chamber expressed disappointment, arguing the fee will burden small and medium-sized businesses and is considering further legal action. The H-1B program allows U.S. employers to hire specialized foreign workers, particularly in technology. Trump justified the fee by citing potential displacement of U.S. workers. Other lawsuits challenging the fee have also been filed.
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Howell is an appointee of Democratic former President Barack Obama.
The White House did not immediately respond to a request for comment.
The Chamber’s executive vice president and chief counsel, Daryl Joseffer, said many small and medium-sized businesses will be unable to afford the fee.
“We are disappointed in the court’s decision and are considering further legal options to ensure that the H-1B visa program can operate as Congress intended,” Joseffer said in a statement.
The H-1B program allows U.S. employers to hire foreign workers with training in specialty fields. Technology companies in particular rely heavily on workers who receive H-1B visas. The program offers 65,000 visas annually, with another 20,000 visas for workers with advanced degrees, approved for three to six years.
Trump’s order would sharply raise the cost of obtaining H-1B visas, which had typically come with about $2,000 to $5,000 in fees depending on various factors.
The Chamber in its lawsuit says the new fee would force businesses that rely on the H-1B program to choose between dramatically increasing their labor costs or hiring fewer highly-skilled foreign workers.
Trump in an order imposing the fee invoked his power under federal immigration law to restrict the entry of certain foreign nationals that would be detrimental to U.S. interests.
Howell on Tuesday said Trump had adequately backed up his claim that the H-1B program was displacing U.S. workers, including by citing examples of companies that laid off thousands of Americans while simultaneously petitioning for H-1B visas.
Reporting by Daniel Wiessner in Albany, New York and Nate Raymond in Boston; Editing by Christopher Cushing and Sonali Paul
Our Standards: The Thomson Reuters Trust Principles.
