US appeals court fast tracks $100,000 H-1B visa fee dispute

By Dietrich Knauth

Jan 5 (Reuters) – A U.S. appeals court on Monday agreed to expedite an appeal of a court loss by U.S. business and research groups that are challenging President Donald Trump’s $100,000 fee on new H-1B visas for highly skilled foreign workers.

The U.S. Chamber of Commerce, the nation’s largest business lobbying group, had argued that a speedy review was needed in order to preserve employers’ rights ahead of the once-annual H-1B visa lottery scheduled to begin in March. The Trump administration did not oppose the quicker timeline, and the court agreed to a plan that will allow oral arguments to proceed in February.

The Chamber of Commerce and White House did not immediately respond to requests for comment.

The annual process is the only opportunity for most U.S. employers that wish to hire skilled workers through the H-1B program to apply for the visas, according to the Chamber’s court filings.

“Those employers’ ability to participate in the H-1B program this year therefore hinges on the outcome of this appeal; without relief by March, it will be too late,” the Chamber said in court papers filed on Friday.

The Chamber is appealing a December 24 decision by a U.S. district judge, who concluded that the new fee fell within the president’s broad powers to regulate immigration.

Before Trump imposed the new $100,000 fee in September, H-1B visas had typically come with about $2,000 to $5,000 in fees depending on various factors.

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 H1-B visas. The program offers 65,000 visas annually, with another 20,000 visas for workers with advanced degrees, approved for three to six years.

The U.S. Department of Homeland Security has separately issued a new regulation that replaces the random selection of the lottery with a new allotment system that prioritizes visas for higher-skilled and higher-paid foreign workers. The rule is scheduled to go into effect on February 27.

The Trump administration has said that the H1-B program has been abused by U.S. employers who seek to replace American workers with lower-paid foreign workers.

The Chamber said in its lawsuit that 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.

A group of Democratic-led U.S. states and a coalition of employers, nonprofits and religious organizations have also filed lawsuits challenging the fee.

The case is Chamber of Commerce v. Department of Homeland Security, U.S. Court of Appeals for the District of Columbia Circuit, No. 25-5473

For the Chamber of Commerce: Paul Hughes of McDermott Will & Schulte; and Daryl Joseffer of the U.S. Chamber Litigation Center

For the Association of American Universities: Lindsay Harrison of Jenner & Block

For DHS: Tiberius Davis, Glenn Girdharry and Alexandra McTague of the U.S. Department of Justice

Read more:

US judge rejects business group’s challenge to Trump’s $100,000 H-1B visa fee

H-1B workers abroad race to US as Trump order sparks dismay, confusion

Explainer – H-1B visa — what is it and who are its beneficiaries?

(Reporting by Dietrich Knauth in New York and Daniel Wiessner in Albany, New York)