20 US states sue Donald Trump to stop $100,000 H-1B visa fee move

California and nineteen other US states have filed a federal lawsuit in Boston to stop the Trump administration's rule imposing a $100,000 fee on new H-1B visas for highly skilled foreign workers. This is the third legal challenge to the fee since it was announced in September. 

The plaintiffs argue that the sharp increase from the current $2,000-5,000 fee violates federal law and could have serious effects on various sectors.

The states say the fee will put financial pressure on employers and institutions that rely on H-1B visa holders, especially in technology, healthcare, and education. California, home to many technology companies, leads the coalition, which includes New York, Massachusetts, Illinois, New Jersey, and Washington. They claim the fee exceeds administrative cost limits and restricts access to qualified foreign professionals.

California Attorney General Rob Bonta's office stated that the Trump administration does not have the authority to impose the fee. They said it violates federal law, which only allows fees to cover the cost of administering visa programmes. Bonta added that the $100,000 fee would create unnecessary financial burdens for providers of essential services like education and healthcare, worsening labour shortages and threatening service cuts.

The Trump administration's order stops new H-1B visa recipients from entering the US unless their sponsoring employer pays the $100,000 fee. Officials clarified that the policy does not affect current H-1B visa holders or those who applied before September 21. The White House says the fee is a lawful use of presidential powers and aims to prevent abuse of the H-1B programme.

Critics argue that the H-1B system allows American workers to be replaced by lower-paid foreign labour. Business groups say the programme is needed to address skill shortages in the country. Industry lobbyists and a coalition including the US Chamber of Commerce, unions, and employers have also filed lawsuits against the fee. Court hearings are expected in Washington, DC, next week.

Trump issued the order under federal immigration law, citing authority to restrict entry of foreign nationals when it is in the US interest. The result of the states’ legal challenge could have major consequences for US employers who depend on skilled foreign workers and for the H-1B visa system as a whole.