The Trump administration’s recent increase in fees for H-1B visas, reaching an estimated 8.8 million rupees, has led to a legal challenge in the United States. A lawsuit was filed in federal court by a diverse coalition including healthcare providers, religious organizations, and university professors. The suit contends the fee increase has created significant challenges for employers, employees, and federal agencies.
The fee increase was implemented via a Presidential proclamation on September 19th. President Trump stated his intent was to address perceived abuses of the H-1B visa program, which he argued led to the displacement of American workers by lower-paid foreign labor. The directive was set to take effect quickly, causing considerable disruption among employers.
The lawsuit, filed in a federal court in San Francisco, underscores the critical role of the H-1B program in the recruitment of healthcare professionals, educators, and its contribution to innovation and economic development, particularly in specialized fields. The Democracy Forward Foundation and Justice Action Center maintain that without relief, hospitals could lose doctors, religious organizations could lose clergy, schools could lose teachers, and industries could lose their key innovators. They are seeking an immediate halt to the order and a return to normal operating conditions for employers and employees, characterizing the fee increase as an anti-immigration strategy.
Critics of the H-1B visa program point out that it can lead to foreign workers taking jobs for salaries as low as $60,000 per year, while American tech workers often earn significantly more than $100,000. Historically, H-1B visas have been issued through a lottery system. Amazon received the most visas this year, followed by Tata Consultancy, Microsoft, Apple, and Google. The state of California hosts the largest concentration of H-1B workers.
American University Professors Association President Todd Wolfson voiced his concern that the substantial fee could deter talented individuals from coming to America, potentially undermining vital research. Mike Miller, Regional Director of the United Automobile, Aerospace and Agricultural Implement Workers of America, emphasized that the Trump administration’s actions prioritized wealth and connections. Skye Perryman, the president of Democracy Forward, asserted the fee increase could encourage corruption and is unlawful, given that the H-1B program was established by Congress and cannot be altered through executive order.
White House spokesperson Abigail Jackson defended the administration’s actions, confirming the order’s legal basis. She clarified the intention to prevent companies from exploiting the system and lowering American wages.
The H-1B program is essential, permitting U.S. employers to recruit foreign specialists in sectors like technology, healthcare, and education. Tech companies rely heavily on this visa for bringing in international talent. Each year, 65,000 visas are issued, with an additional 20,000 reserved for advanced degree holders. These visas are generally valid for three to six years. According to government data, India led the program with 71% of approvals last year, while China had 11.7%. Fees ranging from $2,000 to $5,000 are already paid by employers. The Trump order mandates a cost of approximately 8.8 million rupees per new H-1B hire.