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H-1B Visa Fee Controversy Reaches Courtroom- What Comes Next?

A major legal action was taken on Friday against the steep increase in H-1B visa fees by President Donald Trump's administration.

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Edited By: Nishchay
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H-1B Visa Fee Controversy : A major legal action was taken on Friday against the steep increase in H-1B visa fees by President Donald Trump's administration. A coalition of healthcare organizations, religious groups, university professors, and other institutions filed a lawsuit in federal court. The new rule increases the H-1B visa application fee to approximately ₹8.8 million ($100,000). The petitioners say this decision has created chaos among employers, employees, and federal agencies.

Why Trump Made the Change?

On September 19, President Trump signed a proclamation (presidential order) mandating this steep increase in H-1B visa fees. Trump claims that the program was being misused to replace American workers with cheaper foreign labor. The order, scheduled to take effect within 36 hours, has sent companies into a tizzy.

Lawsuit filed in San Francisco

The court filing states that H-1B visas are vital to America's health, education, and innovation sectors. The lawsuit warns that if the order remains in effect, "hospitals will lose their doctors, churches their pastors, and universities their professors." The Democracy Forward Foundation and the Justice Action Center called the new fees "Trump's anti-immigration ploy" and urged the court to immediately block the order.

Both Opposition and Support

Congress created this visa program to target high-skilled foreign workers needed by American tech companies. Currently, about one-third of H-1B workers are doctors, teachers, clergy, and religious workers. Opponents say that many companies use the program to hire low-paid foreign workers. They point out that H-1B workers earn an average of $60,000, while American tech workers earn $100,000 or more.

Who are the biggest beneficiaries?

Historically, H-1B visas have been issued through a lottery system. This year, Amazon received the most visas (over 10,000), followed by Tata Consultancy, Microsoft, Apple, and Google. Geographically, California has the largest number of H-1B employees. India tops the program—last year, 71% of approvals went to Indian applicants, while China received 11.7%.

'Threat to Innovation'

Todd Wolfson, president of the Association of American University Professors, said such high fees would deter talented researchers and scientists from coming to the United States. Mike Miller, regional director of the UAW (United Automobile, Aerospace & Agricultural Implement Workers of America), said, "This scheme prioritizes wealth and connections over hard work and ability."

Skye Perriman, president of Democracy Forward, said the order is illegal because the H-1B program was created by Congress and no president has the authority to change it overnight.

White House Defense

White House spokesperson Abigail Jackson defended the administration's stance. She said the order is "within the law" and aims to "prevent companies from abusing the system and undermining American wages."

Why the H-1B Visa Program is Important

H-1B visas allow American employers to hire foreign specialists in the technical, health, and education sectors. 65,000 visas are issued each year, with an additional 20,000 seats reserved for advanced degree holders. Currently, employers pay a fee of $2,000 to $5,000, but Trump's order will increase this cost to ₹8.8 million. Petitioners argue that this change will not only discourage global talent but also slow the pace of American innovation.

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