The lawsuit alleges that Trump has no authority to override the law that created the H-1B visa program.
Released on October 3, 2025
A coalition of unions, employers and religious groups has filed a lawsuit attempting to block US President Donald Trump’s bid to charge $100,000 on a new H-1B visa on highly skilled foreign workers.
The lawsuit filed Friday in federal court in San Francisco, marks the first challenge to Trump’s declaration issued last month.
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United Autoworker Union, the American Association of University Professors and other plaintiffs say Trump’s authority to restrict the entry of certain foreigners does not allow him to override the law that created the H-1B visa program.
The program allows employers to hire foreign workers in their specialty areas, and technology companies in particular rely heavily on workers receiving H-1B visas.
Critics of H-1B and other work visa programs say it is often used to replace American workers with cheaper foreign labor. However, business groups and major companies say the H-1B is an important tool to address the shortage of qualified American workers.
Employers sponsoring H-1B workers currently pay a fee of between $2,000 and $5,000, depending on the size of the company and other factors.
Trump’s orders prohibit new H-1B recipients from entering the United States unless the visa sponsoring employer has paid an additional $100,000. The administration said the order will not apply to people who already hold H-1B visas or who filed applications by September 21.
With his unprecedented order, Trump invoked his power under federal immigration laws to limit the entry of certain foreigners that are harmful to the interests of the United States.
He said many low-wage workers in the H-1B program weakened their integrity, and the program poses a threat to national security, including preventing Americans from pursuing careers in science and technology. He said “large change in American workers” through the H-1B program would pose a threat to the country’s economic and national security.
“Pay to play”
The plaintiffs argue that Trump has no authority to change the comprehensive statutory scheme administering the visa program, and that under the US Constitution, they cannot unilaterally impose fees, taxes or other mechanisms to generate US revenue.
“The declaration converts the H-1B program into one that requires employers to impose “pay to play” or “national interest” exemptions. This will be released at the discretion of the Secretary of Homeland Security, a system that opens the door to selective enforcement and corruption,” the lawsuit said.
The group argues that agencies, including the U.S. Department of Homeland Security’s U.S. Citizenship Office and the U.S. State Department, have similarly adopted new policies to implement Trump’s declarations without following the required rulemaking process, without considering that “forcement of exorbitant fees will reduce innovation.”
The H-1B program offers 65,000 visas per year to employers who bring temporary foreign workers into their specialties, and an additional 20,000 visas for workers with advanced degrees. Visas have been approved for 3-6 years.
India was the biggest beneficiary of the H-1B visa last year, accounting for 71% of approved visas, but China was 11.7% in a distant two seconds.
