Legal Storm Over $100,000 H-1B Visa Fee as Multiple U.S. States Move to Court

By: The Trek News Desk

A major legal battle has erupted in the United States after President Donald Trump announced a steep $100,000 fee for new H-1B visas. California, along with 19 other states, has filed a lawsuit in federal court challenging the move as unlawful and unconstitutional. The case was submitted on Friday in a Boston-based federal court.

This lawsuit marks the third legal challenge against the Trump administration’s decision, which was unveiled in September. Under the existing system, employers generally pay between $2,000 and $5,000 for an H-1B visa. The newly announced fee represents a dramatic and unprecedented increase, sparking concern across states and industries.

States Question Presidential Authority

California Attorney General Rob Bonta, in an official statement, argued that the President does not have the legal authority to impose such a high fee unilaterally. According to the lawsuit, federal immigration law permits the government to charge only those fees that are necessary to cover the administrative costs of running visa programs.

Bonta warned that the $100,000 charge would place an excessive financial burden on institutions providing essential services, including schools, universities, and healthcare facilities. He added that the measure could worsen existing labour shortages and potentially force service providers to scale back operations.

States Joining the Legal Challenge

Apart from California, several major states have joined the lawsuit, including New York, Massachusetts, Illinois, New Jersey, and Washington. These states are home to industries that heavily depend on skilled foreign professionals, particularly in technology, healthcare, and research sectors.

Impact on H-1B Program and Tech Sector

The H-1B visa program allows U.S. employers to hire foreign professionals in specialised fields. The technology industry, especially companies headquartered in California, relies heavily on this visa category to fill gaps in highly skilled roles.

While critics argue that H-1B visas are sometimes used to replace American workers with lower-paid foreign labour, business groups and large corporations maintain that the program is essential to addressing a shortage of qualified domestic talent.

White House Defends the Decision

The White House has defended the new fee, stating that it falls within the President’s legal powers and is aimed at preventing misuse of the H-1B visa system. The administration has clarified that the fee will not apply to existing H-1B visa holders or to applications submitted before September 21.

However, California’s Attorney General’s office has countered this argument, stating that the proposed fee far exceeds the actual cost of processing H-1B petitions. The lawsuit further argues that the U.S. Constitution does not allow the President to independently impose fees to generate government revenue, as such powers rest solely with Congress.

Source: News Agencies