A group of unions, higher education professionals, religious organizations and others sued the Trump administration on Friday over its decision to charge a $100,000 fee for visas granted to skilled foreign workers.

The suit, which appears to be the first major challenge to the new fee for H-1B visas, argued that the change was unlawful because the president had no authority to unilaterally impose taxes or other requirements to generate revenue through the program, a power that is granted to Congress.

The plaintiffs also said the administration did not go through the required regulatory process to institute the fee, which they called “arbitrary and capricious.” And they asserted that the federal government failed to consider how the steep fee would harm hospitals, churches, schools, small businesses and nonprofits across the country.

The suit, which was filed in the Northern District of California, comes after President Trump signed a proclamation last month imposing a $100,000 fee for each new H-1B visa. The change set off immediate confusion and chaos, with many companies urging workers outside the United States to return before the change went into effect. The White House later clarified that the fee applied only to new visas, and that existing visa holders would not be affected.

The Trump administration has argued that the visa program has historically hurt domestic workers, and federal officials say the new fee will help discourage companies from using H-1B visas to bring in foreign workers to replace Americans. Some policy experts and immigration hard-liners have applauded the change, which they say will make companies prioritize which foreign workers they want to hire.

But tech start-ups, higher education leaders and school districts have criticized the new fee, which they say will hurt their ability to fill critical roles and stay competitive. Health care associations have also said the fee would exacerbate physician shortages and worsen patient care.