Washington: A coalition of healthcare providers, university professors, religious organizations, and industry groups filed a landmark lawsuit on Friday challenging President Donald Trump’s recently announced $100,000 fee for H-1B visa applications, warning that the move threatens to destabilize critical sectors across the United States. The suit, lodged in the U.S. District Court for the Northern District of California in San Francisco, describes the sudden fee as “chaotic” and disruptive, imperiling hospitals, schools, and places of worship.
Signed on September 19, Trump’s proclamation imposed the unprecedented surcharge on the H-1B visa programme, which is designed to attract high-skilled foreign talent to fill specialized roles that domestic labor cannot fully cover. According to the President, the measure is aimed at curbing alleged exploitation of the system, where foreign workers replace American employees at lower wages. The fee was slated to take effect within 36 hours, sparking immediate concern among employers, who instructed their H-1B workers to return to the United States without delay.
The lawsuit asserts that the H-1B programme is indispensable for sectors like healthcare and education, as well as for research and innovation. “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 stated in a press release. The plaintiffs are seeking an immediate injunction to block the fee and restore stability to employers and workers alike.
Critics of the fee describe it as Trump’s “latest anti-immigration power grab,” arguing that it prioritizes wealth and connections over expertise and merit. Todd Wolfson, president of the American Association of University Professors, warned that the exorbitant cost could drive away top researchers and educators, curbing life-saving scientific advances. Mike Miller of the United Automobile, Aerospace and Agricultural Implement Workers of America echoed the sentiment, asserting that the plan favors financial leverage over skill and diligence.
The lawsuit further argues that Trump lacks the authority to unilaterally alter the programme or impose such a steep surcharge. “Congress created the H-1B programme, and the President cannot rewrite the rules overnight or levy new taxes by executive order,” said Skye Perryman, president and CEO of Democracy Forward. The plaintiffs contend the fee invites corruption and undermines the legal framework of the visa system.
Historically, H-1B visas have served as a vital conduit for skilled foreign workers. According to the lawsuit, roughly one-third of recipients are healthcare professionals, educators, physicians, scholars, and religious leaders. Critics also note that technology companies heavily rely on H-1B workers willing to accept annual salaries far below those of U.S. counterparts, a factor that has fueled the current controversy.
Seattle-based Amazon has historically been the largest recipient of H-1B visas, with over 10,000 granted this year, followed by Microsoft, Apple, Google, and Tata Consultancy. California remains the state with the highest concentration of H-1B workers.
The legal challenge, widely viewed as the first major test of Trump’s visa fee policy, has set off intense debate over immigration, labor rights, and executive authority. With employers and educational institutions scrambling to adapt, the coming weeks may determine whether the $100,000 fee becomes enforceable or is struck down by the courts as unlawful.