Exclusive: Lawmakers push back against Trump's H-1B visa fee

A bipartisan group of House lawmakers is urging President Trump to work with Congress on fixing the high-skilled immigration system instead of imposing a fee on new applicants.

Why it matters: The Trump administration's $100,000 fee for every new H1-B visa applicant is poised to hit small tech companies and startups hard, stifling competition and innovation in the U.S.

Driving the news: Lawmakers from both sides of the aisle are calling on Trump and Commerce Secretary Howard Lutnick to come to the table to negotiate a policy solution to H1-B visa issues.

• "Together, we should evaluate options that include restrictions on outsourcing firms, visa portability to counter wage suppression, revising eligibility and skill classifications, improving enforcement, and modifying the fee structure," the letter, shared first with Axios, states.
• Rep. Sam Liccardo (D-Calif.) led the letter, with Reps. Jay Obernolte (R-Calif.), Maria Salazar (R-Fla.) and Don Bacon (R-Neb.) signing on.

Behind the scenes: Liccardo, who represents Silicon Valley, told Axios that he's been surprised at how many early stage founders and venture capitalists have told him they're worried that the visa fee is going to undermine small companies.

• The mood is different from major players that can ultimately afford the cost, with Nvidia's Jensen Huang and OpenAI's Sam Altman speaking optimistically about the move.
• Liccardo declined to comment on specific companies he spoke with, but said that "what I consistently hear from early stage innovators, venture capitalists and corporate leaders in Silicon Valley in quiet conversations is very different than what is heard at White House press conferences."

State of play: The Chamber of Commerce last week sued the Trump administration, contending the fee contradicts immigration law passed by Congress.

• Liccardo said he believes Trump's proclamation will be struck down, providing an opportunity to reform the program.

Yes, but: Even before Trump's disregard for congressional authority, lawmakers struggled to pass reforms to the H1-B visa program.

• Polarizing views on immigration in Congress — as well as in MAGA world — muddy the debate over how to reform the program.
• "We need to get beyond the zero sum thinking that an immigrant coming to this country is taking the job away from a native born American," Liccardo said, pointing to the "enormous ripple effect of job creation throughout the economy" because of high-skilled immigration.

The bottom line: Bipartisan legislation has been reintroduced to tackle the H1-B visa program, but policy solutions are nowhere near the finish line as Congress struggles to fund the government.