President Donald Trump does not have the constitutional authority to impose a $100,000 fee on new H-1B visas for highly skilled foreign workers, according to a lawsuit opposing the move.
A group of unions, employers and religious groups represented by attorneys at Justice Action Center filed the claim in a federal court on Friday to challenge the president’s proclamation, which is intended to restrict immigration.
The filing said Trump’s power to restrict the entry of foreign nationals does not allow him to override the law that created the H-1B visa program.
Newsweek has contacted the White House and the Justice Action Center for comment.
Why It Matters
The H-1B program offers 65,000 visas annually, and the proposed $100,000 fee is a significant rise from the $2,000 to $5,000 employers who previously sponsored H-1B workers had to pay. The move has raised fears of talent loss and a weakening of American competitiveness in sectors that require skilled workers.
What To Know
Groups such as the United Auto Workers union, the American Association of University Professors and a nurse recruitment agency are among plaintiffs in a lawsuit lodged in the U.S. District Court in San Francisco that challenges Trump’s $100,000 fee for H-1B visas.
The suit came in response to Trump’s move on September 19 to invoke his power under federal immigration law to restrict the entry of certain immigrants.
The president said lower-wage workers in the H-1B program had undercut its integrity. He also accused the program of threatening national security and discouraging Americans from careers in science and technology.
The order does not apply to those already with visas or applications made before September 21.
Plaintiffs have argued that Trump had no authority to alter the statutory rules governing the visa program.
The lawsuit said that under the U.S. Constitution, the president cannot unilaterally impose fees or taxes to generate revenue for the United States as this is a congressional power.
“The broad language of the proclamation and the unprecedented changes to this long-standing program caused a widespread panic,” the filing said.
In analysis shared with Newsweek, the risk intelligence platform RANE said the program was critical for skilled workers in IT, engineering and health care. The company added that with Trump’s decision, smaller firms and universities risked being priced out, which could send high-value jobs overseas.
RANE also said it could exacerbate skilled labor shortages in critical industries, force smaller companies and universities to cut back or relocate talent, and “accelerate outsourcing and erode America’s technological edge.”
Christi Jackson, a partner at Laura Devine Immigration, told Newsweek last month that the fee “raises fundamental concerns about access, fairness, and the sustainability of the H-1B program, particularly for smaller employers.”
However, the White House told Reuters that the proclamation discouraged firms from driving down wages for American workers.
What People Are Saying
The lawsuit against President Donald Trump’s proclamation said, per Reuters: “The Proclamation transforms the H-1B program into one where employers must either ‘pay to play’ or seek a ‘national interest’ exemption, which will be doled out at the discretion of the Secretary of Homeland Security, a system that opens the door to selective enforcement and corruption.”
White House spokesperson Abigail Jackson told Reuters the move was “discouraging companies from spamming the system and driving down American wages, while providing certainty to employers who need to bring the best talent from overseas.”
RANE said the $100,000 H-1B fee could “accelerate outsourcing and erode America’s technological edge [and] intensify demographic and workforce challenges already straining the U.S. economy.”
What Happens Next
The lawsuit may be the beginning of what could be a tough legal fight for the Trump administration to keep the proclamation in place.
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