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Home » ‘H-1B System Spammed With Fraud’: Trump Administration Defends $100,000 Visa Fee Hike Amid Legal Challenge

‘H-1B System Spammed With Fraud’: Trump Administration Defends $100,000 Visa Fee Hike Amid Legal Challenge

Ananya Pattnaik by Ananya Pattnaik
October 24, 2025
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The Trump administration has stood firm on its plan to raise the H-1B visa petition fee to $100,000. The decision has triggered backlash from employers and industry groups, but the White House says the move is needed to fight visa fraud and protect American jobs.


White House Defends the Fee Hike

At a press briefing on Thursday, Press Secretary Karoline Leavitt defended the policy.

“The president’s main priority is to put American workers first and strengthen our visa system,” she said.

Leavitt claimed that the H-1B system has long been misused.

“For far too long, it has been spammed with fraud. That has driven down American wages,” she added.

According to her, the new policy is both lawful and necessary. “We will continue to fight this battle in court,” she said.

Legal Challenges Mount Against the Policy

The US Chamber of Commerce (CoC) has filed a lawsuit against the administration, calling the $100,000 fee unlawful. Several unions, employers, and religious organizations have joined the case in federal courts in California and Washington D.C.

The plaintiffs argue that the new fee violates the Immigration and Nationality Act (INA). Under that law, visa fees must reflect only the cost of processing applications, not serve as a barrier to entry.

“The new $100,000 visa fee will make it cost-prohibitive for small and midsize businesses to use the H-1B program,” said Neil Bradley, Executive Vice President and Chief Policy Officer at the Chamber.

He added that the H-1B system was designed to help American companies hire global talent. “This policy undermines that goal,” Bradley said.

Trump’s Focus on Jobs and Immigration

The H-1B visa allows US employers to hire highly skilled foreign workers, particularly in technology, medicine, and engineering.

In September 2025, Donald Trump announced the fee increase as part of his larger immigration strategy. The plan aims to reduce visa abuse, create jobs for US citizens, and prioritize domestic talent.

The policy is part of the administration’s “America First” agenda, which includes:

  • Supporting long-term tax reforms

  • Encouraging domestic investment

  • Reducing overregulation

  • Strengthening labor markets

Critics argue that the new visa costs could hurt US competitiveness, especially in the technology sector.

Businesses Warn of Economic Impact

Industry leaders say the new fee could harm the US economy.

“To support growth, our economy needs more workers, not fewer,” Bradley said.

He warned that start-ups and small businesses would be the hardest hit. Many rely on H-1B visa holders for innovation and expansion.

The US Chamber of Commerce has urged the government to reconsider the decision. The case is now moving through the courts, with hearings expected later this year.

What the H-1B Program Means for US Companies

The H-1B visa is a non-immigrant work visa that allows American employers to hire skilled professionals from abroad. Every year, around 85,000 H-1B visas are issued through a lottery system.

Most visa recipients work in the IT and engineering sectors, with Indian professionals forming a significant share of applicants.

The $100,000 fee marks the largest increase in H-1B history, and analysts say it could reshape how global talent flows into the US.

The Road Ahead

The White House maintains that the fee hike will prevent fraud and protect US jobs. Businesses, however, warn that it could drive innovation and investment overseas.

The outcome of the lawsuits will likely decide how the future of the H-1B program unfolds — and how it impacts both US employers and skilled foreign workers.

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