Boston: California and 19 other U.S. states have filed a lawsuit seeking to block former President Donald Trump’s controversial $100,000 fee on new H-1B visas, escalating the legal battle over one of the most expensive immigration policy changes in recent history.
The lawsuit, filed on Friday in a federal court in Boston, argues that the Trump administration overstepped its legal authority by imposing the sharply increased fee on employers hiring highly skilled foreign workers. The challenge marks at least the third legal action against the policy, which was announced in September.
Sharp Increase From Existing H-1B Fees
Under the current system, employers typically pay between $2,000 and $5,000 in government fees to sponsor an H-1B visa. Trump’s order raises that cost to $100,000 for new H-1B recipients, dramatically altering the economics of hiring foreign professionals.
California Attorney General Rob Bonta said the fee violates federal law, which permits immigration authorities to collect only fees necessary to cover the administrative costs of visa programs.
“This fee is not about administration—it’s about revenue generation, which the Constitution reserves for Congress,” Bonta said in a statement.
Tech, Healthcare, and Education at Risk
The H-1B visa program allows U.S. employers to hire foreign workers in specialized fields such as technology, engineering, healthcare, and education. California, home to Silicon Valley and many global technology firms, is among the states most dependent on H-1B workers.
Bonta warned that the $100,000 fee would place excessive financial strain on employers providing essential services, worsening labor shortages and potentially leading to reduced services in healthcare and education.
States Joining the Lawsuit
In addition to California, the states backing the lawsuit include New York, Massachusetts, Illinois, New Jersey, and Washington, among others. Many of these states host major tech hubs and research institutions that rely heavily on skilled foreign talent.
White House Defends the Policy
The White House has defended the fee in response to earlier lawsuits, arguing that it is a lawful use of presidential authority and designed to prevent abuse of the H-1B program.
Critics of the program claim some employers use H-1B visas to replace American workers with lower-paid foreign labor. However, business groups and major corporations counter that the program is essential due to a shortage of qualified U.S. workers in high-skill fields.
Business Groups Also Challenge the Fee
The U.S. Chamber of Commerce, the nation’s largest business lobbying group, has filed a separate lawsuit against the fee, along with a coalition of unions, employers, and religious organizations. A federal judge in Washington, D.C., is scheduled to hear arguments in the Chamber’s case next week.
Key Details of Trump’s Order
Trump’s order blocks new H-1B visa holders from entering the United States unless their sponsoring employer pays the $100,000 fee. The administration has clarified that the rule does not apply to existing H-1B holders or applicants who filed before September 21.
The order cites presidential authority under federal immigration law to restrict the entry of foreign nationals deemed detrimental to U.S. interests.
Constitutional Concerns Raised
California’s lawsuit argues that the fee far exceeds the actual cost of processing H-1B petitions, making it unlawful. It also contends that the U.S. Constitution bars the president from unilaterally imposing fees designed to raise revenue—a power reserved exclusively for Congress.
As multiple legal challenges move forward, the future of the $100,000 H-1B visa fee now rests with the federal courts, with significant implications for U.S. employers, foreign workers, and the broader economy.
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