A coalition of unions, employers, and religious groups filed a lawsuit Friday to stop President Trump’s new $100,000 fee on H-1B visas. The legal challenge targets a presidential order that bars entry for new H-1B workers unless their employers pay the hefty fee. The case was filed in federal court in San Francisco and marks the first direct challenge to Trump’s move.
The plaintiffs include the United Auto Workers, the American Association of University Professors, and several nonprofits. They argue Trump overstepped his authority and bypassed Congress, which controls federal revenue. The lawsuit says the fee turns the H-1B system into a “pay to play” model, threatening fairness and opening doors to selective enforcement. The rule, they claim, violates U.S. law and the Constitution.
Read more: White House says $100000 H-1B visa fee to be one-time payment
Trump’s administration said the policy discourages abuse of the H-1B system and protects American workers. Employers currently pay $2,000 to $5,000 per H-1B visa. The new fee would drastically increase costs for companies needing foreign talent, especially in tech and healthcare. The White House defends the change as necessary to “restore integrity” to the program.
Critics of the H-1B programme say it displaces U.S. workers and lowers wages. But tech companies and universities argue the visas are vital to fill skill gaps in science, engineering, and medicine. They warn the new fee could block access to global talent and stifle innovation. Most H-1B recipients come from India, which accounted for 71% of approvals last year.
Read more: President Donald Trump Plans $100,000 H-1B Visa Fee Amid Crackdown
Trump’s order only applies to new applicants after September 21, 2025. It exempts existing visa holders and those already in the pipeline. The plaintiffs say the policy also skipped standard rulemaking procedures, and warn it could harm U.S. competitiveness. The case now moves forward as the debate over immigration and tech talent heats up ahead of the 2026 elections.