Lawsuit Filed Against Trump’s Decision to Impose H-1B Visa Fee, Plaintiffs Call President’s Move ‘Unlawful’

A group of unions, employers and religious groups filed a lawsuit on Friday with an intention to stop US President Donald Trump’s plan to impose a $100,000 fee on new H-1B visas for highly skilled foreign workers.

Coming as the first legal challenge to Trump’s proclamation that was issued two weeks ago, the case has been filed in federal court in San Francisco amid the Republican president’s push for tighter immigration rules.

According to a Business Standard report, under the H-1B visa programme, US employers, particularly tech companies are allowed to hire foreign workers in specialty fields. Traditionally, employers paid fees ranging from $2,000 to $5,000, however under Trump’s order, new visa holders cannot enter the US unless the sponsoring employer pays $100,000.

What Does the Lawsuit Say?

As per the recently filed lawsuit, the H-1B programme is argued to be essential for hiring healthcare workers, educators and other specialists. It drives innovation and economic growth in the US while helping employers fill critical roles.

In a release, the Democracy Forward Foundation and Justice Action Centre said, “Without relief, hospitals will lose medical staff, churches will lose pastors, classrooms will lose teachers and industries across the country risk losing key innovators.” Additionally, the groups are asking the court to block the fee immediately and restore predictability for employers and workers.

The plaintiffs further called the new fee as Trump’s “latest anti-immigration power grab".

The lawsuit has additionally claimed Trump’s move as unlawful because it changes the H-1B programme without congressional approval. Now, employers are forced to either “pay to play” or seek a “national interest” exemption, which the lawsuit refers “opens the door to selective enforcement and corruption”.

“The Proclamation transforms the H-1B programme into one where employers must either ‘pay to play’ or seek a ‘national interest’ exemption, which will be doled out at the discretion of the Secretary of Homeland Security, a system that opens the door to selective enforcement and corruption,” it stated.

Plaintiffs also claim that agencies like the US Citizenship and Immigration Services and US State Department adopted new policies to implement the proclamation without proper rule making or evaluating how “extorting exorbitant fees will stifle innovation", Business Standard reported.

The groups behind the lawsuit include the United Auto Workers, the American Association of University Professors, a nurse recruitment agency, and several religious organisations. They also stated that Trump does not have the authority to override the law that created the H-1B visa programme.  

Trump’s H-1B Visa Fee Hike

Last month, the Trump administration imposed a $100,000 annual fee for each H-1B visa. Commerce Secretary Howard Lutnick said that the move is intended to reduce entry-level training roles while maintaining opportunities for highly skilled workers.

“A company that wants to buy an H-1B visa… it’s $100,000 per year,” the Commerce Secretary said.

The visa programme itself remains unchanged: H-1B visas are valid for three years and can be renewed once, for a total of six years. Each year, 65,000 visas are offered for temporary foreign workers in specialised fields, with an additional 20,000 for workers holding advanced degrees.

Currently, India remains the biggest beneficiary, receiving 71 per cent of approved H-1B visas last year, followed by China at 11.7 per cent.