Washington, DC [US], October 4 : Weeks after United States President Donald Trump signed a proclamation imposing a $100,000 fee on each new H-1B visa for skilled foreign workers, a coalition of unions, educators, religious groups and other organisations has filed the first major lawsuit against the move, calling it "arbitrary and capricious," The New York Times reported.
The lawsuit, filed on Friday (local time) in the Northern District of California, is the first major lawsuit filed against the new visa fee rules, according to The New York Times. The plaintiffs argued that the administration's move was unlawful because the US president has no authority to impose taxes or revenue-generating measures without congressional approval.
The groups said the Trump administration failed to follow the required regulatory process before announcing the fee. They described the decision as "arbitrary and capricious" and warned that the steep cost would hurt hospitals, churches, schools, nonprofits and small businesses that rely on skilled foreign workers.
"The federal government ignored the impact this would have on communities across the country," the statement said as per The New York Times.
The dispute stems from a proclamation signed by President Donald Trump last month, which set the $100,000 charge for every new H-1B visa. The announcement created immediate confusion, with companies rushing to advise workers abroad to return to the United States before the change took effect.
The White House later clarified that the fee would apply only to new visas and not to existing holders.
White House Press Secretary Karoline Leavitt had stated that the USD 100,000 fee on the H-1B visa application is a one-time fee, clarifying the misconception that it is an annual fee.
"To be clear: This is NOT an annual fee. It's a one-time fee that applies only to the petition. This applies only to new visas, not renewals, and not current visa holders," Karoline Leavitt said in a post on X.She also informed that the fee will not be charged on H-1B visa holders who are currently outside of the country.
"Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter. H-1B visa holders can leave and re-enter the country to the same extent as they normally would; whatever ability they have to do that is not impacted by yesterday's proclamation," she said.
The Trump administration has defended the policy, saying the visa program has long hurt American workers by allowing companies to import talent at the expense of domestic jobs.
The White House had issued a fact sheet, justifying Trump's move to impose an annual fee of USD 100,000 on H-1B visa applications, citing concern over US workers being replaced with "lower-paid foreign labour".
The White House stated that the share of IT workers with H-1B visas has risen from 32 per cent in FY 2003 to over 65 per cent in recent years, highlighting the growing unemployment among the US citizens due to the H-1B visas "abuse."
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