California, 18 more US states to sue Trump over $100K H-1B visa fee hike

States argue that the $100,000 H-1B fee exceeds presidential authority, could disrupt tech, healthcare, and education, and adds a costly barrier for employers hiring skilled foreign workers

A coalition of 19 US states, led by California and Massachusetts, is preparing to sue the Trump administration over its recently announced $100,000 fee for new H-1B visa applications, aiming to block the policy before it takes effect. The lawsuit is expected to be filed today in a Massachusetts federal court, according to Bloomberg.

 

The H-1B visa programme allows US employers to hire highly skilled foreign workers, particularly in technology, education and healthcare. The new fee, announced by US President Donald Trump in September, has been criticised as exorbitant and illegal.

 

States cite legal and economic concerns

 

California Attorney General Rob Bonta, one of the leaders of the lawsuit, argued that the administration lacks the authority to impose such a high surcharge. “What Congress has never done is authorise a president to impose a six-figure surcharge designed to dismantle the programme entirely,” Bonta said during a press briefing. He added that the fee could impose significant financial burdens on employers providing essential public services.

 

Massachusetts Attorney General Andrea Joy Campbell told Bloomberg that the fee is arbitrary and exceeds the limits set by Congress. Similarly, New York Attorney General Letitia James warned that the surcharge “will make it harder for New Yorkers to get health care, disrupt our children’s education, and hurt our economy.”

 

The states joining California, Massachusetts and New York in the lawsuit include Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, North Carolina, New Jersey, Oregon, Rhode Island, Vermont, Washington and Wisconsin.

 

Previous legal challenges

 

The lawsuit marks at least the third legal challenge to the Trump administration’s H-1B visa fee hike. The US Chamber of Commerce filed a suit in October, alongside a coalition of unions and a global nurse-staffing agency. Both cases remain ongoing, according to Reuters.

 

Currently, employers pay between $2,000 and $5,000 in fees for H-1B visas. The jump to $100,000 per application has raised concern among corporations, particularly in the technology sector. Companies that rely on the programme include Amazon, Microsoft, Apple, Meta Platforms and Tata Consultancy Services.

 

White House defends fee hike

 

White House spokesperson Taylor Rogers defended the fee, calling it a “necessary, initial, incremental step towards necessary reforms to the H-1B programme”. Rogers added that the move aligns with Trump’s pledge to prioritise American workers by discouraging system abuse and lowering competition for US wages, while still allowing companies access to skilled talent from overseas.

 

The fee hike is expected to have consequences for public services, the attorney general leading the lawsuit warned, saying education and healthcare institutions could face difficulties hiring skilled workers, potentially disrupting essential services for millions of Americans.