California and 19 other U.S. states filed a lawsuit on Friday to block President Donald Trump’s $100,000 fee on new H-1B visas for highly skilled foreign workers. The fee, announced in September, dramatically increases the cost of hiring foreign talent.
The lawsuit, filed in federal court in Boston, argues that Trump lacks the authority to impose the fee and that it violates federal law. California Attorney General Rob Bonta said the fee far exceeds the cost of processing H-1B petitions and is intended to generate revenue, a power reserved for Congress.
Read more: States sue Trump over $100,000 H–1B visa fee
The H-1B program allows U.S. employers to hire foreign workers in specialty fields, with the tech industry particularly reliant on them. Bonta warned that the $100,000 fee would strain essential services, including healthcare and education, worsen labor shortages, and threaten service cuts.
Other states joining California include New York, Massachusetts, Illinois, New Jersey, and Washington. Business groups, unions, and religious organizations have also filed separate lawsuits challenging the fee. A judge in Washington, D.C., will hold a hearing on the Chamber of Commerce lawsuit next week.
Read more: Trump hits H–1B visas, a tech industry favorite, with $100,000 fee
Trump’s order requires new H-1B recipients to pay the fee before entering the U.S. Existing H-1B holders or those who applied before September 21 are exempt. The White House maintains the fee is lawful and aims to prevent abuse of the visa program, though critics argue it unfairly burdens employers and foreign workers.