Recent changes to the H-1B visa program implemented by the Trump administration, which included a substantial increase in fees to the equivalent of approximately 8.8 million rupees, have triggered a significant legal challenge in the United States. A coalition comprised of healthcare providers, religious organizations, university professors, and other groups has filed a lawsuit in federal court. The plaintiffs allege that the fee hike has created chaos for employers, employees, and federal agencies.
The alterations were mandated by President Donald Trump through a proclamation issued on September 19th. The rationale behind the increased fees was the perceived misuse of the H-1B visa program, which the administration believed was exploited to replace American workers with lower-paid, less-skilled foreign labor. The proclamation was slated to take effect within 36 hours, catching employers off guard.
The lawsuit, lodged in a federal court in San Francisco, argues that the H-1B program is critical for the recruitment of healthcare professionals, educators, and contributes to innovation and economic development within the United States, facilitating the employment of specialized workers. The Democracy Forward Foundation and the Justice Action Center have jointly stated that without relief from the visa changes, hospitals could lose doctors, religious institutions could lose their clergy, schools could lose teachers, and entire industries could be at risk of losing their key innovators. They are seeking immediate intervention to halt the order and restore normal operations for employers and employees, branding the fee increase as an anti-immigration tactic.
Critics of the H-1B visa program argue that it facilitates the entry of foreign workers, often willing to work for salaries as low as $60,000 per annum, while American tech workers typically earn upwards of $100,000. Historically, H-1B visas have been granted through a lottery system. In the current year, Amazon, headquartered in Seattle, received the most visas (over 10,000), followed by Tata Consultancy, Microsoft, Apple, and Google. California has the highest concentration of H-1B workers.
American University Professors Association President Todd Wolfson expressed concern that the $100,000 fee could deter talented individuals from seeking opportunities in the U.S. and hinder life-saving research efforts. Furthermore, the Regional Director of the United Automobile, Aerospace and Agricultural Implement Workers of America, Mike Miller, stated that the Trump administration’s plan prioritizes wealth and connections over scientific capability and hard work. Democracy Forward President Skye Perryman asserts the high fees could encourage corruption and are illegal, as the H-1B program was established by Congress and is not subject to unilateral changes or fee imposition via executive order.
In response, White House spokesperson Abigail Jackson defended the administration’s position, emphasizing that the order is legally sound. She indicated that the measure seeks to prevent entities from exploiting the system and suppressing American wages.
The H-1B program plays a pivotal role by permitting U.S. employers to recruit foreign specialists in sectors such as technology, healthcare, and education. Tech companies are highly reliant on the visa program for bringing in international talent. Each year, 65,000 visas are issued, with an additional 20,000 reserved for those holding advanced degrees. These visas are generally valid for three to six years. As per government data, India leads in the program, with 71% of approvals last year, while China had 11.7%. Employers already pay fees ranging from $2,000 to $5,000, depending on factors like company size. The Trump order would increase the cost to approximately 8.8 million rupees per new H-1B hire.
