Trump’s USD 100,000 H1-B visa fee BIG update, can it be scrapped? Faces first legal challenge in US court by…, Here’s what you need to know

A major controversy has erupted in the US over the H-1B visa. A group of labor unions, employers, and religious organizations filed a lawsuit in federal court on Friday in San Francisco to block President Doland Trump’s decision to impose a $100,000 fee on new H-1B visas for highly skilled foreign workers, as per a Reuters report. This is the first lawsuit against the proclamation that the Republican president issued two weeks ago, as he continues his attempts to limit immigration to the United States.

What is the new $100,000 (Rs 88 lakh) H-1B visa fee about?

The H-1B visa is a work visa that’s valid for three years and can be renewed for another three years. This major development could adversely affect India(BHARAT)n professionals in the US. Tata Consultancy Services (TCS) is the second-highest beneficiary with 5,505 approved H-1B visas in 2025, after Amazon (10,044 workers on H-1B visas), according to the US Citizenship and Immigration Services (USCIS). US President Doland Trump’s decision to levy the whopping application fee for H-1B visas is expected to impact India(BHARAT)n nationals, who accounted for almost 70 per cent of all H-1B visas issued in the last few years.

Who filed the first lawsuit against Trump’s H-1B visa fee?

The lawsuit claims that Trump’s action is unlawful. It is alleged that he modified the H-1B program, making employers “pay to play” or require them to apply for a “national interest” which “opens the door to selective enforcement and corruption,” Bloomberg reported. The plaintiffs challenging Trump’s H-1B visa fee include the United Auto Workers (UAW) union, the American Association of University Professors (AAUP), a nurse recruitment agency, and several religious organizations.

Why do plaintiffs consider the H-1B visa fee “arbitrary”?

The plaintiffs argued that the administration’s move was unlawful because the US president has no authority to impose taxes or revenue-generating measures without congressional approval. The groups said the Trump administration failed to follow the required regulatory process before announcing the fee. They described the decision as “arbitrary and capricious” and warned that the steep cost would hurt hospitals, churches, schools, nonprofits and small businesses that rely on skilled foreign workers.

“The federal government ignored the impact this would have on communities across the country,” the statement said as per The New York Times. The White House later clarified that the fee would apply only to new visas and not to existing holders. White House Press Secretary Karoline Leavitt had stated that the USD 100,000 fee on the H-1B visa application is a one-time fee, clarifying the misconception that it is an annual fee. “To be clear: This is NOT an annual fee. It’s a one-time fee that applies only to the petition. This applies only to new visas, not renewals, and not current visa holders,” Karoline Leavitt said in a post on X.

STORY HIGHLIGHTS

1. The plaintiffs challenging Trump’s H-1B visa fee include the United Auto Workers (UAW) union, the American Association of University Professors (AAUP),
2. The lawsuit claims that Trump’s action is unlawful.
3. The H-1B visa is a work visa that’s valid for three years and can be renewed for another three years.
4. The White House later clarified that the fee would apply only to new visas and not to existing holders.

She also informed that the fee will not be charged on H-1B visa holders who are currently outside of the country.”Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter. H-1B visa holders can leave and re-enter the country to the same extent as they normally would; whatever ability they have to do that is not impacted by yesterday’s proclamation,” she said.