Washington, D.C.: The first major lawsuit has been filed against U.S. President Donald Trump’s recent proclamation imposing a $100,000 fee on each new H-1B visa for skilled foreign workers. The suit, brought by a coalition of unions, educators, religious groups, and nonprofit organizations, challenges the rule as “arbitrary and capricious,” according to The New York Times.
Filed in the Northern District of California on Friday, the lawsuit argues that the administration’s action is unlawful, asserting that the President lacks constitutional authority to impose taxes or revenue-generating fees without congressional approval. The plaintiffs also claimed that the administration bypassed the legally mandated regulatory process before announcing the measure.
“The federal government ignored the impact this would have on communities across the country,” the plaintiffs said in a statement, warning that the exorbitant cost would severely affect hospitals, schools, churches, nonprofits, and small businesses that depend on skilled foreign workers.
The controversy began last month when President Trump signed the proclamation establishing the $100,000 charge for every new H-1B visa. The announcement triggered widespread confusion, as companies scrambled to bring employees back to the United States before the rule took effect.
Clarifying the order, White House Press Secretary Karoline Leavitt stated that the $100,000 is a one-time fee, not an annual charge, and applies only to new visa petitions. She further clarified that existing H-1B holders, including those currently outside the U.S., would not be subject to the fee.
“To be clear: This is NOT an annual fee. It’s a one-time fee that applies only to the petition,” Leavitt wrote on X, adding that visa renewals and current holders would remain unaffected.
Defending the decision, the Trump administration argued that the H-1B visa program has long disadvantaged American workers by enabling companies to hire lower-paid foreign labor. In a White House fact sheet, officials claimed that the share of IT workers on H-1B visas has increased from 32% in FY 2003 to over 65% in recent years, leading to rising unemployment among U.S. citizens.
The lawsuit now marks the first significant legal test of Trump’s controversial visa policy, which critics say could reshape the landscape for international skilled workers and U.S. employers alike.
