Washington D.C. – California and 18 other US states are preparing to mount a significant legal challenge against President Donald Trump’s administration over its controversial decision to dramatically increase the H-1B visa fee to $100,000. This coordinated multi-state effort represents one of the most substantial pushbacks against the administration’s immigration policies, with far-reaching implications for American businesses and the technology sector.
19 States Unite Against H-1B Visa Fee Hike
The coalition of states filing the lawsuit includes California, New York, Massachusetts, Illinois, New Jersey, and Washington, among others. Led by California Attorney General Rob Bonta, these states are seeking to block the implementation of the new H-1B visa fee through legal action in Massachusetts federal court. The lawsuit specifically targets the fee imposed on new H-1B visas for highly skilled foreign workers, a program that has become essential to numerous American industries.
This multi-state legal challenge against the H-1B visa fee represents the third lawsuit filed since Trump announced the fee increase in September this year. The coordinated nature of this effort underscores the widespread concern among state governments about the economic and social implications of such a dramatic fee increase.
Massive Increase from Current Fee Structure
The new H-1B visa fee of $100,000 represents an astronomical increase from current rates. Employers currently pay between $2,000 and $5,000 in fees to sponsor H-1B visa holders. This means the new H-1B visa fee would represent a 20 to 50-fold increase over existing costs, fundamentally altering the economics of hiring skilled foreign workers in the United States.
The dramatic escalation of the H-1B visa fee has sent shockwaves through industries that rely heavily on foreign talent, particularly the technology sector. Companies that routinely sponsor multiple visa holders would face millions of dollars in additional costs, potentially forcing significant changes to their hiring practices and business models.
Legal Arguments Against the H-1B Visa Fee
California Attorney General Bonta’s office has outlined specific legal arguments challenging the H-1B visa fee increase. Central to their case is the assertion that President Trump did not have the constitutional authority to unilaterally impose such a fee on H-1B visas, which allow US employers to hire foreign workers in specialty fields requiring advanced knowledge and skills.
Furthermore, the states argue that the H-1B visa fee violates federal law governing immigration fees. According to their legal position, federal law permits immigration authorities to collect fees only to the extent necessary to cover the actual costs of administering visa programs. The $100,000 H-1B visa fee far exceeds any reasonable calculation of administrative costs, they contend, making it an unauthorized revenue-generating mechanism rather than a legitimate cost-recovery measure.
California’s Stake in the H-1B Visa Fee Battle
California holds a particularly significant interest in challenging the H-1B visa fee due to its position as the headquarters state for numerous major technology companies. Silicon Valley and the broader California tech ecosystem have been heavily reliant on workers who receive H-1B visas to fill critical positions in software development, engineering, data science, and other specialized fields.
Attorney General Bonta, a Democrat, emphasized that the $100,000 H-1B visa fee could create unnecessary financial burdens for employers providing vital services across multiple sectors, including education and healthcare. These industries often operate on tight budgets and may find the increased H-1B visa fee prohibitively expensive, potentially leading to staffing shortages in critical areas.
Previous Legal Challenges to the Fee
The lawsuit filed by California and its partner states joins earlier legal efforts challenging the H-1B visa fee. The US Chamber of Commerce, America’s largest business lobby organization, filed a separate lawsuit opposing the fee increase. Additionally, a diverse coalition comprising unions, employers, and religious groups has mounted its own legal challenge.
This array of lawsuits against the H-1B visa fee demonstrates the breadth of opposition to the policy, spanning business interests, labor organizations, state governments, and advocacy groups. The convergence of such diverse stakeholders suggests that concerns about the fee transcend typical partisan or ideological divisions.
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White House Defense of the H-1B Visa Fee
In response to the earlier lawsuits challenging the H-1B visa fee, the White House has defended the policy as a necessary measure to discourage employers from abusing the H-1B visa program. Administration officials have characterized the H-1B visa fee as a lawful exercise of presidential powers, arguing that the president possesses broad authority over immigration policy matters.
The administration’s position suggests that the high H-1B visa fee is intended as a deterrent mechanism, designed to ensure that employers only sponsor foreign workers when truly necessary and cannot find qualified American workers. This framing presents the H-1B visa fee as a policy tool rather than simply a revenue measure.
Implications for Skilled Foreign Workers
The outcome of these legal challenges to the H-1B visa fee will have profound implications for highly skilled foreign workers seeking opportunities in the United States. If the fee is upheld, many employers may become far more selective about sponsoring H-1B visas, potentially limiting career opportunities for international talent and affecting America’s competitiveness in attracting global expertise.
