In a major legal escalation, a coalition of labor unions, nonprofits, religious groups, and a healthcare staffing company has filed a lawsuit against the Trump administration over its newly imposed $100,000 fee for H-1B visa holders.
The complaint, filed Friday in U.S. District Court for the Northern District of California, challenges President Donald Trump’s authority to unilaterally impose such a substantial financial requirement on employers seeking to sponsor foreign skilled workers.
At the heart of the suit is the claim that Trump overstepped executive powers, sidestepping Congress to impose what plaintiffs describe as a revenue-generating mechanism disguised as immigration reform.
“Most fundamentally, the President has no authority to unilaterally impose fees, taxes, or other mechanisms to generate revenue for the United States,” the lawsuit reads. “The Constitution assigns the ‘power of the purse’ to Congress, as one of its most fundamental premises.”
The $100,000 Fee as a Constitutional Crisis
The fee was first introduced by Trump via presidential proclamation, framed as part of a crackdown on abuse of the H-1B system. The president claimed the initiative would reduce fraud, deter outsourcing, and ultimately protect American jobs.
On September 19, Trump publicly stated:
“We’re going to take that money and we’re going to reduce taxes, we’re going to reduce debt.”
That comment, the plaintiffs argue, clearly indicates that the administration is treating the fee like a tax, making its legality even more questionable.
The lawsuit asks the court to invalidate the fee and prohibit the government from enforcing it. It was spearheaded by Global Nurse Force, a healthcare recruiting firm based in California, and includes a diverse coalition of co-plaintiffs.
H-1B Program’s Wide-Reaching Impact
The H-1B visa program has long served as a legal pathway for foreign professionals especially in science, technology, engineering, and mathematics (STEM) fields to work in the United States.
But beyond Silicon Valley, healthcare, education, and manufacturing sectors also rely heavily on the H-1B workforce. The lawsuit highlights that over one-third of H-1B workers are employed outside the tech industry, emphasizing the broad economic implications of the new fee.
Interestingly, the lawsuit does not appear to include any tech companies or organizations among its plaintiffs, suggesting a broader, more cross-sector resistance to the administration’s actions.
White House Defends the Policy
In response to the lawsuit, White House spokesperson Abigail Jackson defended the legality and purpose of the policy.
“These actions are lawful,” Jackson said in an email to local newspapers. “The new requirement will stop companies from spamming the system and driving down American wages, while providing certainty to employers who need to bring the best talent from overseas.”
The administration maintains that the steep cost will serve as a deterrent to misuse, particularly by companies allegedly using the H-1B program to displace U.S. workers or flood the visa lottery with excessive applications.
A Mixed Reaction in the Tech Industry
The initial rollout of the fee sent shockwaves through Silicon Valley, with many companies scrambling to advise employees overseas to return to the U.S. before the new policy could take effect.
Yet despite early backlash, some prominent figures in the tech world have since expressed cautious support among them Nvidia CEO Jensen Huang, who told CNBC:
“Immigration is really important to our company and to our nation's future, and I'm glad to see President Trump making the moves he’s making.”
Such statements underscore the complicated dynamics of U.S. immigration reform, especially within industries that depend heavily on global talent.
Legal Challenge Marks First Major Test for Policy
This lawsuit represents the first substantial legal challenge to Trump’s H-1B fee policy and could set a precedent for future executive actions on immigration. If successful, it may also reassert the power of Congress in fiscal matters, particularly concerning federal revenue policies.
While attorneys for the plaintiffs have yet to issue further public statements, legal experts anticipate a prolonged court battle one that could shape the future of skilled worker immigration in the U.S.
Constitutional Showdown Over Immigration Policy
As industries across the country continue to navigate labor shortages, immigration restrictions, and workforce gaps, the outcome of this lawsuit could prove pivotal. At its core, the case is not just about visa fees it’s a battle over executive authority, constitutional limits, and the future of America’s global competitiveness.
