Market Alert: Trump’s Tariff Policy Pressures Healthcare Stocks

Trumps $100,000 H 1B Visa Fee Faces Legal Challenge from Healthcare and Education Sectors

Oct 06, 2025

Highlights:

  • The legal action names Donald Trump, along with the US Department of Homeland Security, US Customs and Border Protection, and the US State Department, as the defendants in the case.
  • Impact on critical sectors: Plaintiffs warn the fee could worsen staffing shortages in hospitals, schools, and innovation-driven industries, disrupting essential services.
  • Policy backlash: Critics label the move as “Trump’s latest anti-immigration power grab”, urging the court to block the policy and restore stability for employers and workers.

A coalition of healthcare providers, university professors, religious organizations, and advocacy groups has filed a federal lawsuit against the newly imposed $100,000 application fee for H-1B visas, calling it disruptive to critical industries and the broader US economy. At the time of writing, the lawsuit was filed in the US District Court in San Francisco, seeking an immediate injunction to block the policy introduced by former President Donald Trump. The rule, signed as a proclamation on September 19, was set to take effect within just 36 hours, prompting urgent responses from employers reliant on foreign talent.

Healthcare and Education Leaders Voice Alarm

The plaintiffs argue that the steep fee threatens to undermine the recruitment of vital workers in healthcare and education—two sectors already grappling with staffing shortages. They contend that the H-1B visa program has long been an essential channel for hiring specialized professionals such as doctors, nurses, researchers, and teachers. “Without swift intervention, hospitals risk losing medical staff, schools may lose educators, and industries nationwide could see a decline in innovation,” stated a joint release from the Democracy Forward Foundation and the Justice Action Center, two groups representing the plaintiffs.

Accusations of an ‘Anti-Immigration Power Grab’

Critics described the new fee as “Trump’s latest anti-immigration power grab,” arguing that the abrupt rollout created widespread uncertainty among workers, employers, and federal agencies. Some employers even instructed foreign staff to return to the US immediately to avoid being affected by the new policy.

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