A broad alliance of healthcare networks, faith-based organizations, educators, and advocacy groups has taken legal action against a controversial $100,000 fee on H-1B visa applications, introduced under former President Donald Trump.
The lawsuit, filed in the US District Court in San Francisco, seeks to halt the policy, arguing that it threatens critical sectors dependent on foreign talent.
Trump signed the executive order on 19 September, asserting that the H-1B system had been exploited to undercut American workers. The measure was set to take effect within just 36 hours, leaving businesses scrambling to adjust and in some cases recalling employees from abroad.
According to the complaint, the H-1B program is vital to US healthcare, education, and religious institutions.
“If the court doesn’t intervene, hospitals could lose doctors and nurses, churches may be left without pastors, schools could face teacher shortages, and key industries may lose critical talent,” said the Democracy Forward Foundation and Justice Action Center in a joint statement.
The suit demands an immediate block of the order to stabilize the situation. Critics have denounced the fee as “Trump’s latest anti-immigration power grab.”
The lawsuit also argues that the move amounts to an unauthorized tax, which only Congress has the authority to impose.
The Department of Homeland Security, US Customs and Border Protection, and the State Department- all named in the case alongside Trump- have not commented publicly.
The H-1B visa, originally designed to attract foreign professionals for hard-to-fill jobs, has become central to the US workforce in technology, healthcare, and academia. Roughly a third of visa holders work outside the tech industry, in sectors like medicine, education, and religious service.
While critics of the program claim it depresses wages by importing cheaper labor, sometimes paying as low as $60,000 annually. Supporters stress that it fuels innovation and global competitiveness.
Amazon topped the list of H-1B sponsors this year, securing more than 10,000 approvals, followed by Tata Consultancy, Microsoft, Apple, and Google. California continues to host the highest share of foreign skilled workers.
Todd Wolfson, president of the American Association of University Professors, warned that such an exorbitant fee would drive away world-class researchers.
Similarly, Mike Miller of the United Auto Workers said the policy “favors the wealthy and well-connected over talent and hard work.”
Skye Perryman, president of Democracy Forward, said the steep fee is illegal, calling it a form of taxation that Trump has no authority to impose without congressional approval. The lawsuit contends that such a major policy change cannot be enacted by executive order alone.
