H-1B Visa Fee Hike Challenged in Court, Trump Administration Faces Setback

Washington (The Uttam Hindu): A major legal challenge has been filed in a federal court against U.S. President Donald Trump’s recent decision to increase H-1B visa fees. The Trump administration had raised the fee for new H-1B visa applications to nearly ₹88 lakh.

Healthcare organizations, religious institutions, university professors, and other groups filed a lawsuit in San Francisco’s federal court, arguing that the move would throw employers, employees, and agencies into chaos. They stressed that the H-1B program is crucial for hiring doctors, teachers, and innovators in the U.S., and contributes to economic growth.

On September 19, Trump signed a proclamation making the new fee mandatory, claiming that the H-1B program was being misused to replace American workers with cheaper foreign labor. The order was to take effect within 36 hours, creating panic among employers.

Democracy Forward Foundation and Justice Action Center argued that without relief, hospitals would lose doctors, churches would lose pastors, and schools and universities would lose teachers. They termed the new fee an “anti-immigration tactic” by Trump and urged the court to block it immediately.

Opponents of the H-1B program argue that foreign workers often agree to lower wages, putting pressure on U.S. tech salaries. Supporters, however, insist that the program is vital for tech companies, healthcare, and education sectors.

Todd Wolfson, President of the American Association of University Professors, said that such exorbitant fees would discourage talented individuals from coming to the U.S. Union leaders also warned that the plan prioritizes money and connections over skill and merit.

White House spokesperson Abigail Jackson defended the order, saying it was within legal boundaries and intended to prevent companies from abusing the system and undercutting American wages.

Each year, 65,000 H-1B visas are issued, with an additional 20,000 for advanced degree holders. They typically remain valid for 3 to 6 years. Government data shows that in 2024, 71% of H-1B visas were granted to Indians and around 12% to Chinese nationals. Currently, employers pay between $2,000–$5,000 in fees, but under Trump’s new rule, the cost of each new hire would soar to nearly ₹88 lakh.