In a major legal development this week, California and 19 other U.S. states filed a federal lawsuit against the Trump administration over a controversial new fee on H-1B visas for skilled foreign workers. The coalitional suit challenges an unprecedented $100,000 charge imposed on employers seeking new H-1B petitions — a dramatic jump from the typical fees, which generally range from about $2,000 to $5,000. Reuters+1
What’s at Issue?
The lawsuit, filed in federal court in Boston, argues that the administration overstepped its legal authority by imposing such a high fee. According to the states’ legal filings:
- Federal law only allows immigration fees to cover the administrative cost of processing visa petitions — not to generate revenue or reshape policy.
- The lawsuit claims the six-figure fee far surpasses any administrative cost and effectively imposes a new tax without congressional approval.
- States say this fee will hurt industries that rely heavily on H-1B workers, including technology, healthcare, education, and research sectors. Business Today
California Attorney General Rob Bonta, who is leading the coalition, emphasized that the fee could create financial strain for universities, hospitals, and school systems that already face staffing shortages and tight budgets. The Santa Barbara Independent
Who’s Suing?
In addition to California, the lawsuit includes attorneys general from a broad array of states such as New York, Massachusetts, Illinois, New Jersey, and Washington. Together, these states contend the policy undermines both federal procedural law and constitutional principles by bypassing the legislative branch’s authority over revenue and fees. Forbes
The Government’s Defense
The White House and Department of Homeland Security have defended the fee, with officials insisting it is a lawful effort to curb perceived abuse of the H-1B visa system and to protect American workers. They have framed the policy as a tool to discourage companies from overreliance on foreign labor at the expense of domestic hiring. The New Indian Express
Impact and Reaction
The legal pushback adds to earlier challenges brought by business groups — including the U.S. Chamber of Commerce — that argue the fee will damage U.S. competitiveness and intensify labor shortages in critical fields. Many technology companies and research institutions have spoken out against the policy, warning that it could hinder their ability to recruit global talent. The New Indian Express
Notably, the rule applies only to new H-1B petitions filed on or after September 21, 2025, and does not affect current H-1B holders or extensions of existing visas. mass.gov
