A sweeping legal challenge has landed in a San Francisco federal court, aiming to dismantle President Donald Trump’s latest move — a staggering $100,000 fee for every new H-1B visa. The rule, announced through a presidential proclamation two weeks ago, has ignited a storm among unions, universities, employers, and faith groups who say the president has gone far beyond his legal authority.
The lawsuit, brought by a coalition including the United Auto Workers, the American Association of University Professors, and several religious organizations, argues that Trump cannot rewrite the rules of a visa program created by Congress. The challengers contend that the U.S. Constitution reserves the power to levy such fees or taxes for Congress alone — not the executive branch.
Trump’s directive bars any new H-1B worker from entering the U.S. unless their sponsoring employer pays an additional $100,000 on top of existing application fees, which usually range between $2,000 and $5,000. The administration insists the fee is a corrective measure — discouraging companies from “gaming the system” and depressing American wages.
The H-1B program allows U.S. employers to recruit foreign professionals in specialized fields, especially technology and engineering. For decades, tech giants and universities have relied on these visas to fill crucial gaps in talent. India remains the program’s largest beneficiary, accounting for over 70% of all H-1B approvals last year, with China trailing far behind.
Critics of the new policy say it turns the visa system into a “pay-to-play” scheme, with exemptions subject to the discretion of federal officials — an arrangement they warn could foster favoritism and corruption. The complaint also accuses federal agencies of bypassing rulemaking procedures and failing to assess the impact of such a massive financial barrier on research, innovation, and global competitiveness.
Trump has defended the move as a safeguard for national and economic security, claiming that an overreliance on lower-wage foreign talent has discouraged Americans from pursuing STEM careers and weakened the domestic workforce.
If upheld, the policy would mark one of the most dramatic overhauls of the H-1B system in decades — transforming a long-standing employment visa into one of the most expensive in U.S. history. The court battle ahead could determine whether presidents can reshape immigration economics with the stroke of a pen.
