Federal Lawsuit Challenges Trump's $100,000 H-1B Visa Fee: Healthcare Providers and Educators Fight Back

President Donald Trump's recent proclamation requiring a $100,000 fee for H-1B visa applications has triggered a federal lawsuit from a diverse coalition including healthcare providers, religious organizations, university professors, and other stakeholders.

The legal challenge, filed in US District Court in San Francisco on Friday, contends that this abrupt policy change has created widespread confusion among employers, workers, and federal agencies. The coalition is seeking immediate court intervention to block the implementation of this substantial fee increase.

Trump signed the controversial proclamation on September 19, justifying the new fee by claiming the H-1B program has been "deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour." The changes were scheduled to take effect within just 36 hours, prompting employers to urgently recall their workers to the United States.

According to the lawsuit, the H-1B visa program serves as a vital pathway for recruiting essential healthcare professionals and educators while fostering innovation and economic growth across the United States. The program enables employers to fill specialized positions that require specific expertise and skills.

"Without relief, hospitals will lose medical staff, churches will lose pastors, classrooms will lose teachers, and industries across the country risk losing key innovators," stated Democracy Forward Foundation and Justice Action Center in their press release, characterizing the fee as "Trump's latest anti-immigration power grab."

The lawsuit highlights that Congress established the H-1B visa program specifically to attract highly skilled workers for positions that technology companies struggle to fill domestically. Approximately one-third of H-1B workers are employed as nurses, teachers, physicians, scholars, priests, and pastors.

Critics of the program argue it functions as a channel for foreign workers willing to accept salaries as low as $60,000 annually, considerably below the typical $100,000-plus compensation for American technology professionals.

Traditionally, H-1B visas have been allocated through a lottery system. This year, Amazon led as the top recipient with over 10,000 visas awarded, followed by Tata Consultancy, Microsoft, Apple, and Google. California hosts the highest concentration of H-1B workers nationwide.

Todd Wolfson, president of the American Association of University Professors, expressed concern that the $100,000 fee would discourage brilliant minds from bringing crucial research to American institutions. Similarly, Mike Miller, Region 6 Director of the United Automobile, Aerospace and Agricultural Implement Workers of America, criticized Trump's approach as one that "prioritises wealth and connections over scientific acumen and diligence."

Skye Perryman, president and CEO of Democracy Forward, argues that the "exorbitant fee" not only invites corruption but is fundamentally illegal. The plaintiffs maintain that since Congress created the program, Trump lacks the authority to unilaterally rewrite its provisions or impose new taxes through executive order.

Representatives from the Department of Homeland Security, US Customs and Border Protection, Trump administration, and the State Department—all named as defendants—have not yet responded to requests for comment on the lawsuit.