Trade Unions and Non-Profits Sue Trump Administration Over $100,000 H-1B Visa Fee Hike

A coalition of trade unions, hospitals, schools, and faith-based organizations has filed a lawsuit against former U.S. President Donald Trump’s executive order imposing a $100,000 fee on H-1B visa petitions. The suit marks the first major legal challenge to the controversial policy, which critics call unlawful and discriminatory.

What the Lawsuit Alleges

The case, filed in the Northern District of California, argues that the President lacks the authority to impose new visa fees without congressional approval. The plaintiffs claim the fee hike violates administrative law by skipping necessary rulemaking procedures and branding the move “arbitrary and capricious.”

In a joint statement, the plaintiffs said the government “ignored the devastating impact on hospitals, schools, and small businesses that depend on skilled foreign workers.”
They argue that the new rule could cripple essential sectors — especially rural healthcare and education, where H-1B professionals often fill critical workforce gaps.

Who Filed the Case

The lawsuit is backed by Democracy Forward, Justice Action Center, South Asian American Justice Collaborative (SAAJCO), Kuck Baxter LLC, and IMMpact Litigation.
Organizations participating include:

• Global Nurse Force
• Society of the Divine Word
• UAW International and UAW Local 4811
• American Association of University Professors (AAUP)
• Committee of Interns and Residents (CIR)
• Global Village Academy Collaborative, and others.

Their joint statement warned that without court intervention, “hospitals will lose doctors, churches will lose pastors, and classrooms will lose teachers.”

Main Points of Contention

The lawsuit highlights several critical concerns:

• The H-1B visa structure is defined by federal law, and the President cannot unilaterally change fees.
• The “national interest exemption” in the order lacks clarity and opens the door to biased decision-making.
• The $100,000 fee could bankrupt schools, non-profits, and small hospitals reliant on international professionals.
• Economists warn the move could force U.S. companies to shift operations overseas, worsening job losses.

Background

Trump’s executive order, signed on September 19, 2025, aimed to curb alleged misuse of the visa program, claiming that H-1Bs were being used to “replace” American workers with cheaper foreign labor.
The rule was set to take effect within 36 hours, leading to chaos among employers and foreign workers.

The White House later clarified that it is a one-time petition fee, not recurring annually, and would apply only to new applicants, not renewals or existing visa holders.

The H-1B visa — a cornerstone of America’s tech and healthcare industries — enables companies to hire highly skilled foreign professionals. Tech giants such as Amazon, Microsoft, Apple, Google, and Tata Consultancy Services remain the top recipients, with California hosting the highest number of H-1B workers.