Trump’s $100,000 fee for H-1B worker visas challenged in lawsuit

Trump’s $100,000 fee for H-1B worker visas challenged in lawsuit

Earlier this fall, Trump announced a plan that would make U.S. employers pay a $100,000 fee for every new H-1B visa they apply for. That’s not a typo one hundred thousand dollars per worker. This move, which came through a presidential proclamation in late September, has set off a firestorm. The H-1B program is how many companies, especially in tech and research, hire skilled foreign professionals. So this fee would basically turn that process into a luxury.

Within days, a bunch of groups sued. The case was filed in federal court in California on October 3 by a coalition of unions, universities, nonprofits, and employers. You’ve got names like the United Auto Workers, the American Association of University Professors, and the Democracy Forward Foundation in the mix. They’re saying the fee is not just outrageous but illegal.

Their main argument is that Trump doesn’t have the authority to do this on his own. Setting fees like that, they say, is Congress’s job, not the president’s. The lawsuit also claims the administration skipped the usual rulemaking process that federal agencies are supposed to follow but no public notice, no opportunity for comments, nothing. Basically, they’re calling it an overreach and a violation of administrative law.

Also Read:Trump Administration Moves to Limit Visa Duration for Students and Journalists

Beyond the legal side, the plaintiffs say this rule could wreck key industries that rely on H-1B workers. Think universities, hospitals, research labs, even churches. One example in the case involves an Indian postdoc whose visa renewal is stuck because her employer can’t afford the new fee. It’s the kind of story that humanizes what might otherwise sound like a bureaucratic issue.

The Trump team, for its part, insists the goal is to protect American jobs and stop companies from misusing the H-1B system. They’ve argued for years that some tech firms use it to hire cheaper labor instead of training local workers. Under this new policy, they say, only employers with a “genuine” need will bother applying. And to be fair, they’ve said the fee won’t apply to existing visa holders or applications already filed before the rule kicked in.

Still, even people who agree with tightening visa rules think this is extreme. A hundred grand is a huge financial hit, especially for startups, small colleges, or nonprofit organizations. Critics say it’ll push talent to Canada, Europe, or anywhere else that’s more welcoming to skilled immigrants. And if that happens, the U.S. could lose ground in research and innovation areas, it’s long led the world in.

The lawsuit is the first big test of this policy. If the court issues an injunction, the fee could be paused while the case plays out. If not, the new rule stands, at least for now.

It’s really part of a bigger question that’s been hanging around for years that how much power should a president have to shape immigration law without Congress? Whatever the courts decide here will ripple way beyond the H-1B program.