The Donald Trump administration’s plan to impose a $100,000 fee on new H-1B visas is now reportedly facing its first major legal challenge, as unions, universities, and employers argue the move unlawfully undermines a program central to America’s tech and research sectors.
Lawsuit Filed In Federal Court
On Friday, a coalition that includes the United Auto Workers union and the American Association of University Professors filed a lawsuit in federal court in San Francisco seeking to block the fee, reported CNBC.
The plaintiffs argue that Trump’s authority to restrict the entry of foreign nationals does not extend to rewriting laws that govern the H-1B visa program, which was created by Congress under the Immigration Act of 1990.
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What Trump’s Order Requires
Trump’s proclamation, issued last month, mandates that all new H-1B petitions filed from 2026 onward must include a one-time $100,000 payment.
The order does not apply to renewals or current visa holders, but it represents a massive increase from the existing sponsorship costs of roughly $2,000 to $5,000 per application.
The White House argues the steep fee will reduce abuse of the visa system and encourage companies to prioritize American workers.
Critics counter that the measure amounts to a near-ban on the program and threatens the U.S. labor force in science, technology, engineering, and math fields.
Divided Reaction From Business And Academia
The lawsuit underscores deep divisions in corporate America over the policy. Tech companies, including Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META), are among the largest users of H-1B visas.
Nvidia Corporation (NASDAQ:NVDA) CEO Jensen Huang endorsed Trump’s move, calling it “a great start” and linking America’s reputation to the “American dream.” Netflix Inc. (NASDAQ:NFLX) co-founder Reed Hastings also backed the plan, describing it as “a great solution.”
JPMorgan Chase CEO Jamie Dimon urged the administration to consider “good immigration,” while investor Kevin O’Leary warned the rule would “hurt innovation long-term.”
Nobel laureate Paul Krugman called it “disastrous” for America’s global competitiveness in tech, education, and research.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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