Trump’s $100,000 H-1B visa fee faces legal challenge in US court

San Francisco: A coalition of healthcare providers, religious groups, academics, and advocacy organisations has filed a federal lawsuit in the United States to block President Donald Trump’s new $100,000 fee for H-1B visa applications, a move that has thrown employers and foreign workers into confusion and uncertainty.

The lawsuit, filed on Friday in the US District Court in San Francisco, marks the first major legal challenge to the abrupt policy shift introduced by Trump. On September 19, Trump signed a presidential proclamation imposing the fee, arguing that the visa programme “has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour.”

The measure, announced with just 36 hours’ notice, sparked alarm among employers, many of whom instructed overseas staff to return to the United States immediately to avoid complications.

In their legal filing, the plaintiffs argued that the H-1B programme plays a vital role in sustaining the US economy, particularly in sectors such as healthcare, education, and scientific research. The programme allows employers to recruit skilled professionals in fields that are often difficult to staff domestically.

“Without immediate relief, hospitals will lose medical staff, churches will lose pastors, classrooms will lose teachers, and industries across the country risk losing key innovators,” said a joint statement from Democracy Forward Foundation and the Justice Action Center, two of the groups behind the lawsuit.

They described the fee as “Trump’s latest anti-immigration power grab” and urged the court to halt the order and restore predictability for employers and workers.

The Department of Homeland Security and US Customs and Border Protection, named as defendants along with the US State Department and Trump himself, have not yet responded to requests for comment.

Originally created by Congress, the H-1B visa programme was designed to help U.S. companies hire foreign professionals in specialised fields such as technology, engineering, medicine, and education. According to the lawsuit, roughly one-third of H-1B visa holders work in essential roles, including nursing, teaching, clergy, and academia.

Critics of the programme argue that it has become a pipeline for cheaper foreign labour, with some workers earning as little as $60,000 per year — much lesser than the six-figure salaries typically commanded by U.S. workers in the tech sector.

Historically, H-1B visas have been distributed through a lottery system. This year, Amazon received the highest number of approvals, followed by Tata Consultancy Services, Microsoft, Apple, and Google. California remains home to the largest population of H-1B visa holders.

Todd Wolfson, president of the American Association of University Professors, warned that the high fee could deter global talent from contributing to critical research and innovation in the United States. “It will discourage the best and brightest minds from bringing life-saving discoveries to the U.S.,” he said.

Mike Miller, Region 6 Director of the United Automobile Workers Union, criticised the policy for favouring wealth and privilege over skill and merit. “This plan prioritises wealth and connections over scientific acumen and diligence,” he said.

Skye Perryman, president and CEO of Democracy Forward, labelled the fee “exorbitant and illegal”, arguing that only Congress has the authority to make such changes to immigration policy. She stated that this is an executive overreach that invites corruption and instability.

The lawsuit seeks an immediate injunction to block the new rule, which, if upheld, could dramatically reshape access to one of the most important visa programmes for skilled foreign workers.

AP