States Move to Block Trump’s New H-1B Visa Fee in Major Court Battle

California and 18 other states will sue to stop the new H-1B visa fee. The lawsuit will be filed on Friday in a federal court in Massachusetts. It targets the $100,000 fee set by former President Donald Trump in September. The states say the rule harms workers and violates federal law.

The fee is a sharp jump from current H-1B costs. Most employers now pay between $2,000 and $5,000 per visa. The states argue the new fee will hurt key industries and deepen worker shortages.

H-1B Visa Fee Pushes Costs to New Highs

The states say Trump did not have the power to impose the $100,000 fee. According to Reuters, the rule would place a heavy load on employers in tech, healthcare, and education. These industries depend on H-1B workers. They say the fee will slow hiring and raise costs for vital services.

California Attorney General Rob Bonta leads the coalition. The group includes New York, Illinois, Washington, New Jersey, and others. They argue the fee goes far beyond what the law allows. Federal law only permits fees that cover visa processing costs.

The White House has defended the rule in other cases. Officials say the fee is lawful and will stop abuse of the visa program. Critics of H-1B visas claim some companies use them to replace U.S. workers with cheaper labor. But business groups push back. Many say the U.S. does not have enough qualified workers in key fields.

The U.S. Chamber of Commerce has filed its own lawsuit. A judge in Washington, D.C., will hear that case next week. The fee applies only to new H-1B visa holders. It does not apply to people already in the U.S. or those who applied before September 21.

States Warn of Broad Impact on U.S. Workforce

State officials say the Trump fee would push many employers to cut plans. They warn of deeper shortages in hospitals, schools, and tech firms. They say the rule would limit access to key services during a time of tight labor supply.

The lawsuit also argues the fee violates the U.S. Constitution. Under the Constitution, only Congress can set fees to raise federal revenue. The states say Trump cannot use executive power to impose a financial rule of this scale.

Long-term effects could reach beyond tech and healthcare. Many universities rely on H-1B workers in research labs. Business leaders say delays in hiring would slow innovation. They also warn the fee could push companies to shift jobs overseas.

Bonta’s office says the rule does not reflect true government costs. It says the fee is so high it would block employers that depend on foreign talent. The states argue they have a strong legal case. They say the fee harms their economies and is not needed to protect U.S. workers.

The fight over the H-1B visa fee is now one of the biggest immigration battles of the year. The outcome may shape how U.S. companies hire skilled workers in the future. Many businesses say the nation cannot afford limits on the H-1B visa program.

Thought you’d like to know-

Q1: What is the new H-1B visa fee?

The fee is a $100,000 charge for new H-1B visa approvals. It applies only to new recipients and not current holders. States say it exceeds legal limits.

Q2: Who filed the lawsuit?

California leads a coalition of 19 states. They filed the case in a federal court in Massachusetts. They argue the fee is unlawful.

Q3: Why is the fee controversial?

It raises the cost far beyond current fees. Employers say it would harm hiring and deepen worker shortages. Officials say it does not reflect real processing costs.

Q4: Does the fee affect all H-1B holders?

No. It only affects new applicants. People who applied before September 21 are not included.

Q5: What industries rely most on H-1B visas?

Tech, healthcare, and education rely heavily on the program. These fields say they face worker shortages. Many fear the fee will slow hiring.