A coalition of unions, employers, and religious organizations has filed a federal lawsuit challenging former President Donald Trump’s recent proclamation that would impose a $100,000 fee on new H1B Visa applications for highly skilled foreign workers.
The case, filed in a San Francisco federal court, represents the first legal effort to block the controversial policy, which critics argue oversteps presidential authority and undermines the integrity of the United States’ immigration framework.
The H1B Visa program allows U.S. companies to hire foreign professionals in specialized fields such as technology, engineering, and healthcare areas where American firms often struggle to find qualified domestic talent.
Technology giants like Google, Amazon, and Microsoft have long relied on H1B workers to fill critical roles that fuel innovation and global competitiveness.
The Legal Battle Over the $100,000 Fee
The plaintiffs, including the United Auto Workers (UAW), the American Association of University Professors, and several religious institutions, contend that Trump’s order unlawfully alters the statutory structure governing the H1B Visa system.
They argue that only Congress holds the authority to impose fees or taxes, and that the President’s unilateral action violates both constitutional and administrative law principles.
According to the lawsuit, Trump’s proclamation effectively transforms the H1B Visa program into a “pay-to-play” system where employers must either pay the massive fee or seek a “national interest” exemption.
This new mechanism, plaintiffs say, would allow the Department of Homeland Security to selectively grant visas, increasing the risk of corruption and arbitrary decision-making.
The lawsuit further alleges that federal agencies such as the Department of Homeland Security (DHS) and the State Department implemented these changes without proper rulemaking procedures or economic impact analysis.
Critics claim that such an “exorbitant” fee would discourage U.S. employers from hiring foreign talent, stifle innovation, and disproportionately hurt small and medium-sized enterprises that depend on H1B professionals.
Also See: Trump’s $100,000 H-1B Fee Sparks Backlash from U.S. Business Giants
The Trump Administration’s Defense
In defense of the move, White House spokeswoman Abigail Jackson stated that the administration’s intent was to “discourage companies from spamming the system and driving down American wages.”
She emphasized that the policy would still allow employers to hire top global talent while ensuring that U.S. workers are not displaced by cheaper foreign labor.
Trump’s order does not apply to individuals who already hold H1B Visas or those whose applications were filed before September 21.
The administration justified the fee under the President’s authority to restrict the entry of foreign nationals deemed detrimental to U.S. interests.
Trump argued that widespread misuse of the H1B Visa program has weakened national security and reduced incentives for Americans to pursue careers in science and technology.
Impact on U.S. Businesses and Global Talent
Currently, U.S. employers pay between $2,000 and $5,000 in visa-related fees when sponsoring H1B workers – a stark contrast to the proposed $100,000 charge.
Business groups warn that the drastic increase would devastate the country’s ability to attract highly skilled professionals, particularly in industries facing persistent labor shortages.
The H1B Visa program issues 65,000 visas each year for specialized occupations, with an additional 20,000 allocated to applicants holding advanced degrees.
According to government data, India remains the largest beneficiary, accounting for about 71% of H1B approvals, followed by China with nearly 12%.
Industry experts say that restricting the H1B Visa pathway could lead to a talent drain, pushing foreign professionals to seek opportunities in Canada, the UK, or other countries with more favorable immigration policies.
What’s Next for the H1B Visa Policy
The outcome of this lawsuit could have far-reaching implications for U.S. immigration and labor markets. If the court rules against the administration, it could reaffirm Congress’s sole authority over visa-related fees and policies.
However, if the fee is upheld, it may set a precedent for future administrations to impose similar executive-based immigration restrictions.
As the legal battle unfolds, the fate of thousands of skilled workers and employers relying on the H1B Visa program hangs in the balance with the potential to reshape America’s position as a global hub for innovation and talent.
Source: CNBC
