California and 19 other U.S. states have filed a lawsuit seeking to block President Donald Trump’s $100,000 fee on new H-1B visas, escalating legal opposition to a policy that sharply raises the cost of hiring highly skilled foreign workers.
The lawsuit, filed on Friday, 12 December 2025, in federal court in Boston, argues that the president lacks the authority to impose the fee, which was announced in September. According to Reuters, the new charge represents a dramatic increase from the $2,000 to $5,000 employers typically pay to secure H-1B visas.
California Attorney General Rob Bonta’s office said the fee violates federal law, which permits immigration authorities to collect only those fees necessary to administer visa programmes. The complaint also argues that the U.S. Constitution bars the president from unilaterally imposing charges intended to raise revenue, a power reserved for Congress.
The H-1B visa programme allows U.S. employers to hire foreign workers in specialised fields, with the technology sector particularly dependent on the scheme. Many major technology firms are headquartered in California, Reuters reported.
Bonta said the $100,000 fee would place unnecessary financial strain on employers providing essential services, including education and healthcare, worsening labour shortages and potentially forcing service reductions. The states joining California in the lawsuit include New York, Massachusetts, Illinois, New Jersey and Washington.
The White House has defended the policy in response to other legal challenges, saying the fee is a lawful use of Trump’s executive powers and is intended to discourage abuse of the H-1B programme, according to Reuters.
Critics of H-1B and other work visas argue the programmes are used to replace American workers with lower-paid foreign employees. Business groups and major employers, however, maintain that the visas are vital to addressing shortages of qualified U.S. workers.
Separate lawsuits have also been filed by the U.S. Chamber of Commerce, the country’s largest business lobby, and a coalition of unions, employers and religious organisations. Reuters reported that a judge in Washington, D.C., is scheduled to hold a hearing in the Chamber’s case next week.
Under Trump’s order, new H-1B visa recipients are barred from entering the United States unless their sponsoring employer pays the $100,000 fee. The administration has said the measure does not apply to existing visa holders or applicants who filed before September 21.
Trump invoked his authority under federal immigration law to restrict the entry of foreign nationals deemed detrimental to U.S. interests. Bonta’s office said the fee far exceeds the actual cost of processing H-1B petitions, making it unlawful under existing statutes.
(With inputs from Reuters)
