Trump’s H-1B Visa Fee Hike Draws Backlash From US Business Groups

A coalition of major US industry groups has issued a rare public rebuke of President Donald Trump’s newly announced $100,000 H-1B visa application fee, warning the policy could damage the economy and disrupt critical talent pipelines.

In a letter sent to Trump on Friday, around a dozen organisations representing technology, retail and semiconductor firms said the fee risks choking off skilled foreign workers who are vital for filling specialised roles, Bloomberg News reported.

“We ask the administration to work with industry on necessary reforms to the H-1B visa program without increasing the significant challenges US employers face recruiting, training, and retaining top talent,” the groups wrote.

The signatories included the Business Software Alliance, SEMI (the semiconductor industry body), the National Retail Federation, the Entertainment Software Association and the Information Technology Industry Council, according to a copy of the letter reviewed by Bloomberg News.

Rare Break With The Administration

The objections mark one of the few open challenges from corporate America to Trump’s policies since his administration began. The President unveiled the fee last month at the White House, presenting it as a move to curb abuse of the H-1B programme while encouraging firms to prioritise US workers.

White House spokesman Kush Desai defended the measure, arguing it would protect both American workers and legitimate companies. “Widespread visa abuse not only undermines American workers, but undermines the companies that need to recruit first-class talent,” he said.

Critical Talent At Stake

Businesses, however, warned that the higher costs could hit industries ranging from technology and healthcare to finance. Firms such as Microsoft, Amazon and Walmart have long relied on H-1B visas to secure highly skilled workers.

The groups stressed that sectors including artificial intelligence and biomedical engineering could suffer setbacks. “The new approach to H-1B visas, as it stands, will harm the Administration’s goals to ensure the US remains a leader in AI, revitalises manufacturing growth, and propels US-developed energy,” the letter noted.

Board members of SEMI include executives from Intel, TSMC, Samsung Electronics, Applied Materials and KLA Corp. Meanwhile, representatives from Walmart, Target and Macy’s sit on the National Retail Federation’s executive committee. Walmart is among the country’s largest H-1B users.

Legal Challenge Emerges

The policy also faces legal hurdles. On Friday, a nurse-staffing agency and several unions filed a lawsuit in federal court seeking to block the new fee. For hospitals, particularly in rural areas, the H-1B programme has been a lifeline for recruiting doctors amid ongoing shortages.

The administration has since clarified that doctors may qualify for exemptions from the fee, according to its 22 September guidance.

Copies of the business coalition’s letter were also sent to Homeland Security Secretary Kristi Noem, Commerce Secretary Howard Lutnick and Secretary of State Marco Rubio. Despite the pushback, the groups emphasised their willingness to work with the administration on H-1B reforms.