A sweeping new policy by President Donald Trump to impose a $100,000 fee on H-1B visa applications has sparked strong opposition from some of America’s most influential business groups, marking a rare public rebuke of the administration by the corporate community.
In a joint letter sent to the White House on Friday, a coalition of industry organizations – including the Business Software Alliance, the Semiconductor Equipment and Materials International (SEMI), the National Retail Federation (NRF), the Entertainment Software Association, and the Information Technology Industry Council – warned that the new fee could have a devastating effect on U.S. competitiveness.
The groups argued that the hefty fee would disrupt a vital talent pipeline that American companies depend on to fill high-skilled positions in sectors such as technology, health care, finance, and manufacturing.
They urged the administration to collaborate with industry stakeholders to reform the program “without increasing the significant challenges U.S. employers face recruiting, training, and retaining top talent.”
The rare criticism comes just weeks after President Trump announced the changes at the White House, describing the six-figure fee as a move to curb “abuses” in the skilled worker program.
The administration framed the new policy as a way to prioritize American workers and curb fraudulent visa practices.
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White House spokesperson Kush Desai defended the fee, saying it would “help U.S. companies access top talent while reducing fallout from fraudulent practices by bad-faith actors.”
However, business leaders say the measure could backfire by making it more difficult for companies to hire the specialized workers needed to maintain innovation and global competitiveness.
Companies like Microsoft, Amazon, Walmart, and Intel have long relied on the H-1B visa program to fill roles in engineering, artificial intelligence, and biomedical research.
Industry groups warned that the steep fee could deter applications and push highly skilled professionals to other countries, undermining America’s edge in cutting-edge industries.
“The new approach to H-1B visas, as it stands, will harm the Administration’s goals to ensure the U.S. remains a leader in AI, revitalizes manufacturing growth, and propels U.S.-developed energy,” the letter stated.
The impact of the new policy extends beyond Silicon Valley. Hospitals and health care providers, especially in rural regions struggling with staffing shortages, have also raised alarms.
A nurse-staffing agency and several unions filed a lawsuit in federal court on Friday challenging the legality of the $100,000 fee, arguing it places an unfair financial burden on essential medical employers. The administration has indicated that doctors may qualify for certain exemptions, but clarity remains limited.
Despite their concerns, the business groups expressed willingness to collaborate with federal agencies, including the Departments of Homeland Security, Commerce, and State, to modernize the visa system responsibly.
The controversy underscores the delicate balance between protecting American jobs and maintaining the flow of global talent that fuels U.S. innovation.
With the H-1B program already serving as a cornerstone of America’s high-tech and medical sectors, many in the business world fear that the new policy could jeopardize the very economic growth it aims to protect.
