A coalition of hospitals, faith-based organizations, educators, and advocacy groups has filed a federal lawsuit challenging President Donald Trump’s new $100,000 H-1B visa fee. They called it an unlawful move that has upended the nation’s skilled worker system.
The lawsuit, filed in U.S. District Court in San Francisco on Friday, argues that the sudden rule change has “thrown employers, workers and federal agencies into chaos” and jeopardized essential services in healthcare, education, and research.
“Without relief, hospitals will lose medical staff, churches will lose pastors, classrooms will lose teachers, and industries across the country risk losing key innovators,” the Democracy Forward Foundation and Justice Action Center said in a joint statement. The groups urged the court to block the policy immediately and restore “predictability for employers and workers.”
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Trump’s proclamation, signed Sept. 19, imposed the exorbitant new fee on companies sponsoring H-1B visa applications, citing what he described as widespread abuse of the program to replace American workers with lower-paid foreign labor. The order, which was to take effect in just 36 hours, prompted panic among employers who scrambled to recall employees from abroad.
The administration has not commented publicly on the lawsuit, which also names the Department of Homeland Security, U.S. Customs and Border Protection, and the State Department as defendants.
Congress created the H-1B visa system to help U.S. employers hire skilled professionals in fields where domestic labor is scarce. The lawsuit notes that roughly one-third of H-1B holders are doctors, nurses, professors, and clergy members, many of whom play critical roles in underserved communities.
Critics of the new fee say it would price out smaller employers and research institutions while favoring wealthy corporations. “The $100,000 fee will discourage the best and brightest minds from bringing life-saving research to the U.S.,” said Todd Wolfson, president of the American Association of University Professors.
Mike Miller of the United Automobile, Aerospace and Agricultural Implement Workers of America said in an AP report that the plan “prioritizes wealth and connections over scientific acumen and diligence.”
Democracy Forward’s president, Skye Perryman, called the fee “an exorbitant and illegal power grab,” arguing that the executive branch has no authority to unilaterally rewrite a program established by Congress or impose what amounts to a new tax.
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The H-1B program traditionally uses a lottery system to allocate visas. Tech giants like Amazon, Microsoft, Apple, and Google account for many of the recipients each year, with California hosting the largest concentration of visa holders.
The lawsuit marks the first major legal effort to stop Trump’s H-1B overhaul, setting the stage for what could become a pivotal court battle over immigration and executive authority.
