WASHINGTON : The lawsuit, lodged in San Francisco on Friday, marks the first major legal challenge to what critics are calling one of the administration’s most aggressive anti-immigration measures.

The plaintiffs including the United Auto Workers union, the American Association of University Professors, a nurse recruitment agency, and several religious organizations, argue that Trump exceeded his constitutional authority by bypassing Congress, which holds the exclusive power to set federal spending. They warn the fee transforms the H-1B program into a “pay to play” system, opening the door to selective enforcement and corruption.

The lawsuit comes just two weeks after Trump’s September 19 proclamation, which has already sent shockwaves through industries dependent on skilled foreign workers. The fee, which represents a staggering increase from current costs of $2,000 to $5,000, threatens to saddle companies with millions in added expenses. Amazon alone secured over 10,000 H-1B approvals in the first half of 2025, while Tata Consultancy Services followed with more than 5,500 approvals.

The backlash isn’t limited to unions and educators. A dozen leading business groups, including the Business Software Alliance, semiconductor lobby SEMI, and the National Retail Federation, sent a letter to Trump on Friday warning that the rule will cripple a crucial talent pipeline and leave critical jobs unfilled. The U.S. Chamber of Commerce is also weighing its own lawsuit, citing previous court victories against Trump-era visa restrictions.

Healthcare and education leaders have voiced alarm over the policy’s broader consequences. “Without relief, hospitals will lose medical staff, churches will lose pastors, classrooms will lose teachers, and industries across the country risk losing key innovators,” said advocacy groups Democracy Forward Foundation and the Justice Action Center in a joint statement.

Economists caution that the fee could push small businesses and startups, already struggling with costs, toward moving high-value work overseas, undercutting America’s competitive edge in fields like artificial intelligence. Critics argue that rather than protecting American jobs, the measure risks draining the U.S. of vital talent across technology, healthcare, and education.