On October 3, 2025, a coalition of labor unions, healthcare providers, academic institutions, and religious groups, filed a lawsuit urging a federal court to strike down the $100,000 fee imposed on new H-1B petitions by the Trump administration for workers outside the United States.
What the Lawsuit Says
The lawsuit, filed in the U.S. District Court for the Northern District of California, argues that the fee which took effect September 21, violates both the Immigration and Nationality Act and the Administrative Procedure Act. Plaintiffs claim the President lacks authority to unilaterally impose a fee of this kind, especially one designed to raise revenue or direct government spending.
The Trump administration’s sudden rollout of the H-1B fee caused immediate disruptions:
- Workers abroad scrambled to return to the United States, paying steep travel costs.
- Others inside the U.S. canceled planned international travel.
- Some even asked to deplane midflight upon hearing the news.
The fee is seen by critics as a threat to institutions that rely heavily on skilled foreign workers—such as universities, health systems, and religious groups—particularly in fields already facing staffing shortages.
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