'Trump has no authority': What lawsuit against $100,000 H-1B visa hike says

A US coalition of unions, employers and religious groups sued to block Trump's $100,000 annual H-1B visa fee announced last month, calling it unlawful and unfair to employers

A coalition of unions, employers, and religious groups filed a lawsuit on Friday aiming to stop President Donald Trump’s plan to impose a $100,000 fee on new H-1B visas for highly skilled foreign workers, Reuters reported.

 

Filed in federal court in San Francisco, this is the first legal challenge to Trump’s proclamation issued two weeks ago, as the Republican president pushes to tighten immigration rules.

 

The H-1B visa programme allows US employers, particularly tech companies, to hire foreign workers in specialty fields. Traditionally, employers paid fees ranging from $2,000 to $5,000. Under Trump’s order, new visa holders cannot enter the US unless the sponsoring employer pays $100,000.

 

What does the lawsuit say about Trump’s order?

 

The lawsuit argues that the H-1B programme is essential for hiring healthcare workers, educators and other specialists. It drives innovation and economic growth in the US, while helping employers fill critical roles.

 

“Without relief, hospitals will lose medical staff, churches will lose pastors, classrooms will lose teachers, and industries across the country risk losing key innovators,” said the Democracy Forward Foundation and Justice Action Centre in a press release. The groups are asking the court to block the fee immediately and restore predictability for employers and workers.   

 

  The plaintiffs describe the new fee as Trump’s “latest anti-immigration power grab".

 

The lawsuit claims Trump’s move is unlawful because it changes the H-1B programme without congressional approval. Employers are now forced to either “pay to play” or seek a “national interest” exemption, which the lawsuit says “opens the door to selective enforcement and corruption”.

 

“The Proclamation transforms the H-1B programme into one where employers must either ‘pay to play’ or seek a ‘national interest’ exemption, which will be doled out at the discretion of the Secretary of Homeland Security, a system that opens the door to selective enforcement and corruption,” the suit states.

 

Plaintiffs also argue that agencies like the US Citizenship and Immigration Services and US State Department adopted new policies to implement the proclamation without proper rule making or evaluating how “extorting exorbitant fees will stifle innovation".

 

Groups behind the lawsuit include the United Auto Workers, the American Association of University Professors, a nurse recruitment agency, and several religious organisations. They maintain that Trump does not have the authority to override the law that created the H-1B visa programme.   

 

Trump’s H-1B visa fee hike

 

On September 19, the Trump administration announced a $100,000 annual fee for each H-1B visa. Commerce Secretary Howard Lutnick said the move is meant to reduce entry-level training roles while maintaining opportunities for highly skilled workers.

 

“A company that wants to buy an H-1B visa… it’s $100,000 per year,” Lutnick said.

 

The visa programme itself remains unchanged: H-1B visas are valid for three years and can be renewed once, for a total of six years. Each year, 65,000 visas are offered for temporary foreign workers in specialised fields, with an additional 20,000 for workers holding advanced degrees.

 

India remains the biggest beneficiary, receiving 71 per cent of approved H-1B visas last year, followed by China at 11.7 per cent.

 

(With agency inputs)