California: A group of 20 US states, led by California, has launched a legal challenge against President Donald Trump’s decision to impose a $100,000 fee on new H-1B visas, arguing the move is unlawful and would severely disrupt key sectors of the economy.
The lawsuit, filed Friday in federal court in Boston, seeks to block the policy announced in September that dramatically increases the cost of sponsoring highly skilled foreign workers. Until now, employers typically paid a few thousand dollars in processing and administrative fees to hire workers through the H-1B program.
California Attorney General Rob Bonta said the administration does not have the authority to levy such a fee, contending it violates federal statutes that limit visa charges to the actual cost of running immigration programs. His office said the new amount bears no relation to processing expenses and instead functions as an unauthorized revenue-raising measure.
The H-1B visa system is widely used by employers in technology, healthcare, education and research fields, many of which face ongoing labor shortages. Bonta warned that the steep increase would place additional strain on hospitals, universities and other essential service providers, potentially leading to reduced services and unfilled positions.
States joining the lawsuit include New York, Massachusetts, Illinois, New Jersey and Washington, among others. Together, they argue the fee would harm state economies, discourage investment and make it harder for employers to recruit specialized talent.
The White House has defended the policy in response to earlier lawsuits, saying the higher charge falls within the president’s authority and is intended to curb misuse of the visa system. Critics of the program have long argued it undercuts American workers, while businesses counter that the visas are necessary to fill roles for which qualified US workers are scarce.
The legal challenge by the states is one of several now pending. The US Chamber of Commerce and a broad coalition of unions, employers and faith-based groups have also taken the administration to court. A hearing in the Chamber’s case is scheduled in Washington, DC, next week.
Under Trump’s order, foreign workers approved for new H-1B visas are barred from entering the country unless their sponsoring employer pays the $100,000 fee. The administration has said the rule does not apply to current visa holders or applications submitted before September 21.
