The Volokh Conspiracy
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US Chamber of Commerce Files Lawsuit Challenging Trump's $100,000 H-1B Visa Fee
This is the second lawsuit challenging the policy, which is both illegal and likely to cause great harm if allowed to stand.

Yesterday, the US Chamber of Commerce filed a lawsuit challenging Donald Trump's imposition of a $100,000 fee on applications for H-1B visas, which are used by tech firms, research institutions, and others to hire immigrant workers with various highly specialized skills. This is the second lawsuit against the H-1B visa fees. The earlier case , Global Nurse Force v. Trump, was filed a coalition of mostly left-leaning litigants, including education groups (e.g. - the American Association of University Professors), religious organizations, and labor unions. It's not every day that major labor unions find themselves on the same side as America's leading organization representing businesses! But this issue has brought them together.
In a previous post, I outlined reasons why Trump's imposition of the H-1B visa fee goes beyond the statutory authority granted by Congress, and also explained how the administration's interpretation of the law would violate the nondelegation doctrine (which limits delegations of legislative power to the executive). I also summarized why the fee would inflict grave harm on the US economy, as H-1B visa holders disproportionately contribute to innovation and economic growth.
The lawsuit filed by the Chamber makes many of the same types of arguments as the Global Nurse Force plaintiffs. They too, emphasize that Trump lacks statutory authority to impose the fees, and that interpreting the relevant statutes to allow it would go against the "major questions" doctrine, and violate constitutional limits on delegation, especially given that this delegation involves the power to raise revenue. And revenue-raising is, as the Chamber notes, "a core power reserved for Congress (see, e.g., U.S. Const. art. I § 7, cl. 1; id. § 8, cl. 1), "Congress must indicate clearly its intention to delegate to the Executive the discretionary authority to" impose "'fees' or 'taxes…'"
I think the Chamber should develop the nondelegation argument further, including making the point that Trump's position implies virtually unlimited presidential authority to restrict migration and impose conditions on entry. That violates nondelegation even aside from the revenue angle.
I hope the combination of the Chamber lawsuit and the earlier case will lead to the demise of the $100,000 fee, preferably sooner rather than later. There may be other cases challenging the fee, as well. I will likely have more to say as this litigation continues.
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I have a better solution -- 4 years before the mast. Serve in the US armed forces for 4 years as enlisted and EARN your visa.
Don't like that -- go back to where ever you came from...
What a disgusting ableist suggetion.
Also Trump is screwing over people already in a program to do this.
Ilya somehow seems surprised that the US Chamber of Commerce and Public Sector Labor Unions both want to destroy the country.
US chamber of commerce aka corporate america for cheap labor? Whoda thunk it?
I don't see anything here that would destroy our country, other than Trump's illegal actions.
It is hardly a mystery why big business prefers to import workers than to use American workers. Foreign workers cost less, driving down wages in the entire country, and, with the perpetual threat of being fired and expelled from the country hanging over their heads, they are less apt to complain about employer abuse than an American worker. Like so many "libertarians" who claim to want "market wages", Somin really wants sub-market wages, accomplished by artificially skewing the market by importing a bunch of essentially indentured servants.
Somin constantly invokes the so-called "nondelegation doctrine", a bygone relic of the Lochner era, but, as the Supreme Court itself has not invoked it since 1935, it is unlikely to start now, especially after it recently upheld the President's broad delegated powers to restrict aliens in Trump v. Hawaii (2018), though, at that time, Somin made the same nondelegation argument, an argument not even accepted by the dissenters in that case (though one would hardly expect the liberal justices to revive a relic of the Lochner era).
Additionally, as usual, Somin completely misapprehends the "major questions doctrine", which went unmentioned by either the majority or dissent in Trump v. Hawaii. All it requires is that Congressional delegation of a "major power" be clear, and it could hardly be clearer in the case of restrictions upon the entry of aliens.
Whose finding? The President's. Which aliens? Any aliens. What restrictions? "Any restrictions he may deem to be appropriate."
A fee imposed on employers who apply for such a visa is not a finding that the entry of aliens would be detrimental — it's literally the opposite — and is not a restriction on the entry of aliens into the U.S. at all. Is English your native language?
Somin’s posts are always so predictable I rarely need to spend the time to actually read them. Query, does he ever deviate and take an unexpected position?
"Congress must indicate clearly its intention to delegate to the Executive the discretionary authority to" impose "'fees' or 'taxes…'"
Must it indeed?
At the outbreak of the Civil War, Congress passed several statutes prohibiting commercial intercourse with the states in rebellion. The President, however, was allowed to make exceptions, by granting licenses subject to "rules and regulations prescribed by the Secretary of the Treasury." President Lincoln granted several such licenses which imposed upon the licensees a fee of four cents per pound of cotton. After the War, several companies sued to recoup this fee, arguing it was "illegal" if “levied for revenue purposes,” because the Constitution conferred on Congress the “‘power to lay and collect taxes, duties, imposts, and excises’” and such “power cannot be delegated.” They also argued that the statutory authority to make “‘rules and regulations’” was “distinct” from “the power to levy taxes.”
A unanimous Supreme Court sided with the government, upholding the propriety of the fee. Hamilton v. Dillin, 88 U.S. 73 (1874).
The unanimous Supreme Court held that this was a war measure, not a tax measure.
The reasoning of the court also seems to predate/violate the unconstitutional conditions doctrine. It in essence said, “We said you could trade in cotton if you paid this tax; if you didn’t want to pay you should’ve just not dealt in cotton.”
A quick reading of the complaint does not turn up any allegation that a member of plaintiff's organization has had an application denied for failure to pay a fee, or that any regulation has been published requiring payment of a fee.
Before dismissing the case for lack of standing the judge should strike the pleading as a 49 page press release substituting for a 5 page complaint.
The last sentence was a nice touch!
I said it before, its worth repeating:
1: No one has standing. the fee has not been imposed or requested.
2: This was air cover for the simultaneously issued H1B lottery changes. The 30 day comment period is ending.
3. The Trump admin would be perfectly fine shutting down the H1B program for a year or two while litigation creeps through the courts. They can slow walk visas, the courts cant force them to be issued. Be careful what you wish for. Shutting down the program will be more harmful than the 100k fee.
4. Overseas outsourcing: Watch the banks like JP Morgan. Regulators and bank examiners are going to start asking about overseas labor exposure in key risk functions. Companies will not so easily shift overseas like in the past.
You may be right. Perhaps President Trump is using the inevitable litigation over this as a cover to simply shut down granting visas.
Nonetheless, I suspect messing with things businesses routinely depend on is going to piss off a lot of powerful people and may well have political consequences for him down the road.
Since you stepped outside the lane of legal expertise into that of political speculation let me comment.
1-Trump's entire political career has "pissed off a lot of powerful people." He was just elected to a second, non-consecutive term. This makes me believe you overestimate the power of the people you refer to.
2-The political consequences of pissing off powerful people is ever increasing populist support from American voters who oppose the power structure that ships American production overseas or replaces American workers with foreign workers in the states.
3-Given the one person, one vote dynamics of American politics, the math is on Trump's side. There are more of the workers who support these restrictions than company owners (powerful people) who oppose them.
The political reality is that the majority of America workers have long opposed globalization and now they have a politician in Trump who will take on those "powerful people." I would argue you misjudge what the real political consequences are.
Although I often disagree with Professor Somin, I completely agree that only Congress can impose a tax, and Congress has neither done so itself nor delegated authority to do so to the President. While Congress can delegate setting the amount of relatively minor fees to cover things like administrative expenses, this is nothing of that sort.
I would leave for another day the question of whether Congress could delegate the authority to impose a tax of this magnitude to a future case, should Congress lose its mind and decide someday to do so. However, I would tend to suspect that it couldn’t.
This has been another edition oh FAFO. Tune in next week for a new episode.
Several cmmentators have said nobody has paid the fee. What exactly has happened? Have (a) visas been issued routinely without the fee? Or (b) visas issued, but only to special friends or inexchange for special favors, or (c) have they been held in limbo, with companies refusing to pay the fee and visas not being granted unless the fee is paid?
If (a), I’d totally agree President Trump’s proclamation (or whatever he’s been calling his pronouncements these days) is mere bluster and no business of the courts. But if (b) or (c), it seems to me there is standing to sue.
(B) is hard as a merits question. When Congress gave the President the vast discretion he has, they didn’t take into account the possibility he might be corrupt and treat visas as a personal asset to be used for personal and political purposes.
Thank goodness, Big Business, through the Chamber of Commerce, is there to stand up against Trump’s corruption.
H1B applicants to the lottery wont pay any fee until they enter the next lottery. Registration is usually around March. This year, the registration for the FY2026 lottery ran from March 7, 2025, to March 24, 2025. Next year, it should be around the same time.
https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations/h-1b-electronic-registration-process
Typically, the fee is around 5-6K, plus there is another equivalent amount for the legal fees (most large companies pay outside firms to help applicants with the paperwork).
Current H1B visa holders will not pay the fees per the admin guidance.
So, literally no one has paid the 100k fee because the process wont open for new applicants until March 2026 or so. And the website has not been updated with any new fee schedule.
As I said... no one has standing to sue, yet.
The actual schedule of fees updated 10/16/2025 https://www.uscis.gov/g-1055
Still shows the $215 H1b registration tool fee.
So the 100k "proclamation" is pure phantasmagorical wizardry that nobody has paid (or will pay as of now).
Once again: one need not have paid the fee to get injunctive relief. Do you think the administration is going to take the position in the litigation that the suit should be dismissed because the administration is not going to charge the fee?
I have had 4 open positions on my team for experienced (5+ years experience) electrical engineers that I have been unable to fill for over 10 months. I receive 5-6 resumes a week for each position. 99% of those are foreign applicants. In the past 10 months, I have received about 10 resumes from US citizens total, about 50 resumes from Canadian or Mexican applicants (TN visas) and the rest are H1B holders or seeking H1B. 90% of those are from India, a smattering from the middle east, and a few from China. All of the US candidates were new grads--which I already have a ton of--and none are experienced.
The blanket H1B visa fee has basically shutdown my ability to recruit. We now are putting all H1B applicants on hold. Since this $100k fee was announced, I have had 1 US applicant and 1 Canadian applicant that have sufficient experience. Unfortunately, neither had any leadership experience, which is what I need.
I don't know what industry Trump thinks this fee is protecting, but it is making my ability to find and hire qualified applicants impossible.
In 1981, I was a simple production worker making semiconductors seeking to transfer into a technical position which was then granted because someone had faith in me. I didn't disappoint. By 1984 I had a Field Service Engineer title, and was flying across the country repairing semiconductor production equipment, all without any college or technical training. After 1987, companies wanted qualifications and degrees first, not raw abilities.
Don't discount the unknowns of people.
Already done. Many of my staff are technicians who promoted after sufficient experience and exhibited knowledge. Degrees are not required, but engineering knowledge, discipline, and principles are required.
How much effort did you do to go out and find candidates? Or are you just posting and looking at responses?
I'm the hiring manager, not the recruiter. I don't know what they use. But my inbox in our resume tool is as I described.
Your people are your greatest asset. If you are not actively recruiting candidates for openings you are failing at the most important aspect of your job. You can not sit back and wait for someone else to do it.
Pay a competitive salary or go out of business.
US candidates and H1B candidates are on the same pay scale. We don't pay differently based on residency.
Who said you did pay differently based on residency besides you.
Your company obviously do not pay a competitive wage or you would not have openings. Whatever pay scale you refer to is self-evidently out of date.
Your company does not want to pay the rate demanded by engineers legally allowed to work in the United States. This does not bode well for the future of your employer.
Many people on this thread and others have claimed that H1B's are pricing US citizens out of the market. See above ("Foreign workers cost less ...."). They aren't driving down prices in my industry.
And for us, it is location, not pay. We aren't in the Bay Area or Austin or NYC. We are in rural middle America (flyover country) and nobody (except us bitter clingers--and foreign workers) wants to live here. We support manufacturing and these position cannot be remote.
Ilya does not argue from a legal viewpoint. He argues from a political viewpoint, in this case his standard "unlimited right to immigration" doctrine. Is he utterly ignorant of the tremendous damage he does to the rule of law by doing so? He is not alone. Some lunatic Democrat judge fantasized the power to order ICE to wear body cams and have them on at all times. Sara Ellis, a jurist in robes, is a poster child for a Fascist Dictator.
A definite hallmark of fascism is insisting on accountability for law enforcement!
A hallmark of Fascism is unelected and unaccountable officials claiming power they do not possess to further their political objectives.
You must get overruled in court on a regular basis David.
Like the first thing you said, that is not actually a hallmark of fascism.
If the Chamber were not controlled by financiers fed a steady diet of right-wing nonsense in graduate business schools, it would find it has a lot in common with so-called left-leaning litigants.