The H-1B programme, vital especially to US tech firms, allows employers to hire specialised foreign workers.
Hyderabad: A coalition of unions, employers and religious groups in the US has filed a federal lawsuit seeking to block President Donald Trump’s order imposing a $1 lakh fee on new H-1B visa applications for highly skilled foreign workers. The lawsuit, filed in San Francisco, is the first legal challenge to the controversial fee, announced two weeks ago amid the Trump administration’s tightened immigration policies. Indian advocacy groups have extended their support to the move.
The plaintiff groups — including the United Auto Workers union, the American Association of University Professors and several religious bodies — argue that the US President lacks the authority to impose such a fee, as the H-1B visa programme is governed by federal law passed by Congress. They contend that the administration’s move circumvents legislative powers, creating a “pay-to-play” system that undermines fairness and invites selective enforcement.
The H-1B programme, vital especially to US tech firms, allows employers to hire specialised foreign workers. India remains the largest beneficiary, accounting for 71 per cent of these visas last year. While critics say H-1B visas undercut American jobs by allowing cheaper labour, most businesses regard them as essential to filling high-skill positions.
Under existing rules, employers pay between $2,000 and $5,000 per H-1B application. Trump’s order blocks new visa recipients unless the sponsoring employer pays an additional $1,00,000, exempting only those with existing visas or applications filed before September 21. The administration has defended the fee as a measure to deter misuse of the programme and protect American jobs, even suggesting that H-1B dependence discourages Americans from entering tech fields.
Indian-American groups have sharply criticised the US President’s decision. The Indian American Advisory Forum (IAAF) called the new fee an “unprecedented financial barrier” that endangers thousands of Indian professionals and their contributions to the US economy. IAAF member Ramesh Goud, who hails from Armoor and now works as a graduate assistant at a US university, said, “We will strongly support this legal challenge and work to mobilise community awareness and political advocacy to reverse these punitive measures.”
Nikita Rohan, an Indian software engineer in Denver employed by Square, voiced similar concerns. “This fee could deter companies from hiring skilled Indian workers like me, affecting our careers and family lives profoundly. We urge US lawmakers to recognise the importance of immigrant talent in driving innovation,” she said.
The lawsuit and growing opposition reflect deep concern within the Indian diaspora and among U.S. employers about the future of legal, high-skilled migration. The outcome will be closely watched, as it could reshape the flow of talent between India and the United States — a link vital to both economies.
Gfx points:
· Lawsuit challenges US President Donald Trump's $1,00,000 fee for H-1B visas.
· This is the first lawsuit filed challenging the new fee.
· Over 70% of H-1B visas are Indians.
· Lawsuit argues Trump lacked constitutional authority to impose the fee.
· Employers had previously paid $2,000 to $5,000 in fees to sponsor H-1B workers
