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A coalition of unions, employers, and religious groups has filed a lawsuit in federal court in San Francisco to block President Donald Trump’s order imposing a $100,000 fee on new H-1B visas. The case marks the first legal challenge to Trump’s proclamation, issued two weeks ago, which aimed to further restrict immigration by raising costs for employers seeking to hire skilled foreign workers.
The plaintiffs include the United Auto Workers, the American Association of University Professors, a nurse recruitment agency, and several religious organizations. They argue that Trump exceeded his authority, since only Congress has the power to impose fees or taxes. According to the lawsuit, the administration’s move effectively transformed the H-1B program into a “pay-to-play” system that threatens fairness, innovation, and U.S. competitiveness.
The White House defended the measure, with spokeswoman Abigail Jackson stating it was a lawful effort to discourage abuse of the visa system and protect American wages. Trump claimed the program was undermining national security and discouraging U.S. citizens from pursuing careers in science and technology, pointing to what he described as the “large-scale replacement of American workers.”
Currently, employers sponsoring H-1B workers typically pay between $2,000 and $5,000 in fees. The new rule would apply only to new applicants after September 21 and exempt existing visa holders. Plaintiffs argue that agencies, including the Department of Homeland Security and the State Department, bypassed necessary rulemaking procedures when implementing the policy.
The H-1B program provides 65,000 visas annually, plus an additional 20,000 for workers with advanced degrees. These visas are crucial for U.S. technology companies, which rely heavily on foreign talent. India accounts for 71% of approved visas, followed by China at 11.7%, according to government data. Critics argue the visas depress wages, while businesses emphasize they fill critical skill shortages in the American workforce.
