Business Groups Warn $100,000 H-1B Visa Fee Will Hurt U.S. Economy, Undermine Innovation:

A coalition of major U.S. business organizations is urging President Donald Trump to reconsider a controversial new policy that imposes a $100,000 fee on H-1B visa applications, warning it could damage the U.S. economy and choke off access to highly skilled global talent. In a joint letter sent to the White House on Friday, roughly a dozen industry associations representing technology companies, chipmakers, retailers, and software firms called the new H-1B fee a significant barrier to hiring foreign skilled workers. The groups said the fee threatens to disrupt a vital talent pipeline and leave thousands of high-skill roles unfilled, particularly in sectors like artificial intelligence, healthcare, and semiconductor manufacturing. “We ask the administration to work with industry on necessary reforms to the H-1B visa program without increasing the significant challenges U.S. employers face in recruiting, training, and retaining top talent,” the letter stated. The message was carefully framed to support the administration’s broader economic goals, while firmly opposing the steep visa fee. Signatories include the Business Software Alliance, SEMI (Semiconductor Equipment and Materials International), the National Retail Federation, the Entertainment Software Association, and the Information Technology Industry Council, according to a copy of the letter obtained by Bloomberg. Rare Public Rebuke from Corporate America The protest marks a rare and public break between the business community and the Trump administration over immigration policy. The H-1B visa, which allows U.S. employers to hire foreign workers in specialty occupations, has long been relied upon by companies such as Microsoft, Amazon, and Walmart to fill critical roles in IT, engineering, and data science. Trump announced the visa policy change last month, calling the $100,000 application fee a tool to combat abuse of the skilled worker program and incentivize companies to hire more American workers. But industry leaders argue the policy will have the opposite effect — driving talent away from the U.S. and into countries with more favorable immigration policies. A White House spokesperson defended the decision, stating the policy would “help U.S. companies access top talent while reducing fraudulent practices by bad-faith actors.” “Widespread visa abuse not only undermines American workers, but also the companies that depend on first-class talent to stay competitive,” said spokesperson Kush Desai. High Costs Could Hurt Innovation and Growth Business groups warned that the sharp increase in costs will hit industries across the board — from tech and finance to healthcare and manufacturing. They emphasized that fast-growing sectors like biomedical engineering, semiconductors, and AI research depend on steady access to global talent to maintain America’s leadership. “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, and drives U.S.-based energy innovation,” the groups wrote. Major companies with board members in these coalitions include Intel, Samsung, TSMC, Applied Materials, and KLA Corporation — all of which are deeply involved in U.S. manufacturing and R&D operations. Healthcare, Retail Also Impacted The new policy has also raised alarms in the healthcare industry, where the H-1B program is often used to recruit physicians and nurses, especially in rural or underserved areas. While the administration announced that doctors may qualify for a fee exemption, several unions and a nurse-staffing agency filed a lawsuit Friday challenging the legality of the fee in federal court. Retail giants are also feeling the pressure. Executives from Walmart, Target, and Macy’s, who sit on the National Retail Federation’s board, have not issued formal statements, but Walmart — one of the largest users of H-1B visas — has reportedly advised employees on the visa not to travel outside the country. Looking Ahead Despite the backlash, the industry groups said they remain open to collaborating with the administration on responsible H-1B reforms. Copies of the letter were also sent to Homeland Security Secretary Kristi Noem, Commerce Secretary Howard Lutnick, and Secretary of State Marco Rubio. With legal challenges now unfolding and business pressure mounting, the future of the H-1B program — and its role in the U.S. innovation economy — remains uncertain.

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