The Trump administration’s decision to dramatically increase the fee for new H-1B visa applications to $100,000 (approximately ₹8.8 million) has sparked a major legal challenge in the United States. On October 3, 2025, a coalition of labor unions, employers, religious organizations, educators, and others filed a lawsuit in federal court in San Francisco seeking to block the fee hike.

The lawsuit argues that President Trump lacks the constitutional authority to unilaterally impose such a fee, as the power to set taxes and fees resides solely with Congress. Plaintiffs claim the administration bypassed proper rulemaking procedures and that the fee is both "arbitrary and capricious." Critics say the fee will hurt hospitals, religious groups, schools, small businesses, and the tech sector, which heavily relies on skilled foreign workers through the H-1B visa program.

The H-1B visa system grants 85,000 annual visas—about 70% to Indian nationals—to recruit high-skilled foreign workers in specialized fields, including technology, healthcare, and education. The new fee threatens to deter employers from sponsoring these workers, potentially worsening labor shortages and stifling innovation. Companies like Amazon, Microsoft, Apple, and Google, which employ large numbers of H-1B workers, face significant implications.

The White House defends the fee as a legal measure to stop visa program abuses, arguing it protects American workers’ wages and discourages companies from replacing domestic workers with cheaper foreign labor.

The court’s decision on this lawsuit will shape the future of H-1B visa reform and immigration policy in the US. Meanwhile, employers and prospective visa applicants remain in a state of uncertainty as the legal process unfolds.