California and 19 other US states have filed a federal lawsuit to block President Trump’s $100,000 fee on new H-1B visas for highly skilled foreign workers.
The lawsuit, filed in Boston, is at least the third legal challenge to the fee announced in September. The fee significantly increases the cost of hiring H-1B workers, as employers previously paid between $2,000 and $5,000.
California Attorney General Rob Bonta said the fee is unlawful. He argued that Trump does not have the authority to impose such fees and that federal law allows immigration authorities to charge only costs needed to administer visa programs.
The H-1B program allows US employers to hire foreign workers in specialized fields. The tech industry, particularly in California, relies heavily on H-1B workers to fill skilled positions.
Bonta added that the $100,000 fee could create financial burdens for essential services like education and healthcare. He warned that it may worsen labor shortages and reduce the availability of critical services.
Other states joining the lawsuit include New York, Massachusetts, Illinois, New Jersey, and Washington.
The White House has defended the fee, claiming it is a lawful exercise of presidential authority. Officials say the measure aims to prevent abuse of the H-1B program. Critics argue that H-1B visas are sometimes used to replace American workers with lower-paid foreign employees. However, business groups insist these workers are crucial to addressing skill shortages.
Separate lawsuits challenging the fee have been filed by the US Chamber of Commerce and a coalition of unions, employers, and religious organizations. A judge in Washington, DC, is set to hold a hearing on the Chamber’s lawsuit next week.
Trump’s order requires employers to pay the fee before new H-1B recipients can enter the United States. It does not apply to current H-1B holders or those who applied before September 21.
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Bonta’s office emphasized that the fee far exceeds the cost of processing applications and violates the US Constitution, which reserves revenue-raising powers for Congress.
