Coalition Sues Trump Administration Over New $100,000 H-1B Visa Fee

A broad coalition of labor unions, health-care providers, academic groups, religious organizations, and individual visa holders has filed a federal lawsuit seeking to overturn a new $100,000 entry fee imposed on H-1B workers by the Trump administration.

The lawsuit, filed yesterday, October 3, 2025, in the U.S. District Court for the Northern District of California, argues that the proclamation—issued on September 19 and effective September 21—violates the Immigration and Nationality Act and the Administrative Procedure Act. Plaintiffs contend that the President lacks the authority to unilaterally impose fees or taxes, or to dictate how such funds are spent.

The surprise announcement of the fee caused significant disruption and panic among employers and H-1B workers abroad, leading to immediate financial harm and logistical challenges for many. The plaintiffs assert that the new policy will damage companies, schools, and other institutions reliant on the H-1B program, potentially intensifying shortages of teachers and nurses, hindering university research, and impeding religious organizations from staffing effectively.

Among the plaintiffs are the United Auto Workers, the American Association of University Professors, the Catholic missionary Society of the Divine Word, and Global Nurse Force. The lawsuit names President Donald Trump, Homeland Security Secretary Kristi Noem, Secretary of State Marco Rubio, USCIS Director Joseph Edlow, and CBP Commissioner Rodney Scott as defendants.

A White House spokesperson defended the administration’s action, stating it discourages businesses from “spamming the system and driving down American wages,” while ensuring employers can bring in top international talent.

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