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Why Trump’s H-1B visa fee hike is facing a lawsuit: All you need to know
A group made up of trade unions, healthcare providers, schools, and religious groups has filed a lawsuit against President Donald Trump's executive order that increases the cost of H-1B visas. This is the first major legal challenge to the policy.
What the lawsuit claims
The lawsuit, filed on Friday in the Northern District of California, argues that the fee hike is unlawful. The plaintiffs say the President does not have the power to introduce new fees without Congress. They also claim the order ignored the proper regulatory process and call it “arbitrary and capricious.”
In a statement cited by , the groups said: “The federal government ignored the impact this would have on communities across the country.”
They warn that the high fee will hurt hospitals, schools, churches, and small businesses that rely on skilled foreign workers.
The plaintiffs are being represented by Democracy Forward, Justice Action Center, South Asian American Justice Collaborative (SAAJCO), Kuck Baxter LLC, Joseph & Hall, P.C., and IMMpact Litigation, according to .
Organisations involved in the lawsuit include:
Global Nurse Force Global Village Academy Collaborative Society of the Divine Word The Fathers of St. Charles Church on the Hill International Union United Auto-Aerospace Agricultural Implement Workers of America (UAW International)
UAW Local 4811 American Association of University Professors (AAUP) Committee of Interns and Residents, SEIU (CIR) A UK citizen living in Appalachia An Indian citizen living in Northern California
In a joint press release, Democracy Forward Foundation and Justice Action Centre said: “Without relief, hospitals will lose medical staff, churches will lose pastors, classrooms will lose teachers, and industries across the country risk losing key innovators.”
They also described the new fee as Trump's latest anti-immigration “power grab.” The lawsuit asks the court to block the order immediately and restore predictability for employers and workers.
Key points from the lawsuit
According to TOI, the complaint outlines several serious concerns with the $100,000 visa fee:
The H-1B visa system already has a clear set of fees and rules defined by law. The lawsuit says the President cannot change this system on his own or create new charges without Congress. The executive order includes a vague “national interest” exemption, but doesn't explain who qualifies or how it will be applied. This opens the door for unfair, arbitrary decisions. The fee will have a severe impact on rural hospitals, which may lose doctors and nurses. Schools could lose teachers, as the fee is more than many annual salaries. Non-profits and research institutions also say they can't afford the cost. These organisations rely on H-1B workers and say the loss would be damaging. Economists say that H-1B workers create jobs and help grow industries in the US. Forcing skilled talent to go elsewhere could push companies to move operations and jobs overseas. Background
On September 19, Trump signed a proclamation introducing the $100,000 fee for H-1B visa applicants. He claimed the visa programme was "deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour."
The order was set to take effect just 36 hours later, causing panic among employers. Many rushed to bring their employees back to the US immediately.
Later, White House Press Secretary Karoline Leavitt clarified on social media: “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.”
She added, “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 visas are normally given out through a lottery system. This year, Amazon, based in Seattle, received the most approvals, over 10,000 visas. Other top recipients included Tata Consultancy, Microsoft, Apple, and Google. Geographically, California is home to the largest number of H-1B workers in the country.
Source: EconomicTimes
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