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Unions, Employers Sue to Block Trump's $100,000 H-1B Visa Fee

By    |   Friday, 03 October 2025 04:40 PM EDT

A coalition of labor unions and employer groups filed a lawsuit on Friday to block President Donald Trump’s plan to impose a $100,000 fee on new H-1B visas for high-skilled foreign workers, according to Reuters. The suit, filed in federal court, argues the administration’s action is unlawful, exceeds statutory authority, and would function as a de facto ban on the visa program.

The specific list of plaintiffs was not available at press time.

The new fee was announced in a presidential proclamation signed on September 19. Reuters reported that the White House later clarified the charge would not apply to existing H-1B holders or renewals, but only to new petitions going forward. Even with that limitation, business and academic groups warned that the fee would shut down access to global talent for all but the wealthiest companies.

The H-1B program was created by Congress in 1990 to allow U.S. employers to hire foreign professionals in specialized fields such as technology, engineering, and medicine. The program has long been capped annually and subject to prevailing wage and recruitment requirements. Investing.com noted that the lawsuit challenges whether a president can unilaterally impose such a sweeping financial burden, since the Immigration and Nationality Act provides no statutory authority for a surcharge of this magnitude. Legal experts cited by the outlet added that courts have traditionally upheld executive immigration powers on national security grounds, not purely economic ones.

The potential impact of a $100,000 fee per visa is vast. The Financial Times reported that the measure could add up to $14 billion annually in costs for employers. Reuters also said major technology firms have already advised employees on H-1B visas to avoid international travel, fearing they could face complications reentering the country if the rule is in effect.

The policy has further fueled congressional debate. Reuters reported on September 29 that Senators Chuck Grassley of Iowa and Dick Durbin of Illinois reintroduced a bipartisan bill to reform both H-1B and L-1 visas, citing concerns about outsourcing firms exploiting the programs. Their proposal would tighten wage rules and mandate broader recruitment of U.S. workers before employers turn to foreign hiring.

Unions and employers now suing the administration argue that Trump’s order effectively guts the H-1B system by pricing out smaller firms, universities, and hospitals. Investing.com reported that the outcome of this case could set a precedent on whether economic justifications alone can sustain such a sweeping executive action. The courts will decide whether a president can overhaul a decades-old visa framework without congressional approval or whether the judiciary will strike down the attempt as an unlawful overreach.

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A coalition of labor unions and employer groups filed a lawsuit on Friday to block President Donald Trump's plan to impose a $100,000 fee on new H-1B visas for high-skilled foreign workers, according to Reuters. The suit, filed in federal court, argues the administration's...
visa, trump, lawsuit
432
2025-40-03
Friday, 03 October 2025 04:40 PM
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