Unions, educators sue Trump administration over $100,000 H-1B visa fee

Weeks after US President Donald Trump announced a $100,000 one-time fee on new H-1B visas for skilled foreign workers, a coalition of unions, educators, religious organisations and nonprofits has filed the first major lawsuit challenging the policy, The New York Times reported.

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The case, filed in the Northern District of California on Friday, argues that the administration’s move is unlawful as the president has no authority to impose revenue measures without congressional approval. The plaintiffs also said the White House bypassed the regulatory process and described the decision as “arbitrary and capricious.”

“The federal government ignored the impact this would have on communities across the country,” the groups said in a statement cited by The New York Times. They warned that the steep fee would particularly hurt hospitals, schools, churches and small businesses that depend on skilled foreign professionals.

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The lawsuit follows confusion triggered by Trump’s proclamation last month imposing the $100,000 fee on every new H-1B visa. Companies had rushed to advise employees abroad to return before the rules took effect.

White House Press Secretary Karoline Leavitt later clarified that the measure applies only to new visa petitions and not to renewals or existing holders. “To be clear: This is NOT an annual fee. It’s a one-time fee that applies only to the petition. This applies only to new visas, not renewals, and not current visa holders,” she posted on X.

She further said that current H-1B holders abroad will not be charged for re-entry. “Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter,” Leavitt added.

The Trump administration has defended the decision, saying the visa programme has contributed to job losses for Americans. A White House fact sheet stated that the proportion of IT jobs filled by H-1B visa holders rose from 32% in FY2003 to over 65% in recent years, citing this as evidence of the programme’s “abuse” and its impact on US workers.