California and 19 other US states filed a lawsuit on Friday seeking to block President Donald Trump’s $100,000 fee on new H-1B visas for highly skilled foreign workers. The legal challenge, filed in federal court in Boston, marks at least the third lawsuit opposing the policy announced in September.
Under current rules, employers typically pay between $2,000 and $5,000 to sponsor an H-1B visa. The new fee would significantly increase that cost and apply only to new applicants.
California Attorney General Rob Bonta said the president lacks the legal authority to impose the fee. His office argued that federal law allows immigration agencies to collect only the amount needed to administer visa programs. According to the lawsuit, the $100,000 charge far exceeds those costs and therefore violates federal statutes.
Bonta’s office also said the U.S. Constitution prevents the president from unilaterally imposing fees to raise revenue, a power reserved exclusively to Congress.
Trump’s unlawful new $100,000 H1-B visa fee could cause staffing shortages for teachers, physicians, researchers, nurses and other vital workers, endangering CA’s ability to provide critical services.
We’re suing.
The Trump Administration thinks it can wildly raise these fees… pic.twitter.com/h4CYC8MYp9
— Rob Bonta (@AGRobBonta) December 12, 2025The H-1B program allows US employers to hire foreign professionals in speciality occupations. The technology sector, which has a strong presence in California, relies heavily on these visas. Education and healthcare providers also depend on skilled foreign workers.
Bonta warned that the new fee would place unnecessary financial strain on institutions that deliver essential services. He said the policy could exacerbate labour shortages and force providers to reduce services.
Read: Trump administration cracks down on H1B visa abuse
States joining California in the lawsuit include New York, Massachusetts, Illinois, New Jersey, and Washington. Meanwhile, the US Chamber of Commerce and a coalition of unions, employers, and religious organisations have filed separate legal challenges. A judge in Washington, DC, is scheduled to hear arguments in the Chamber’s case next week.
White House Defends the Policy
The White House has defended the fee in response to earlier lawsuits. Officials argue that the measure is a lawful exercise of presidential authority and will deter misuse of the H-1B program.
Critics of the visa program claim employers use H-1B visas to replace American workers with lower-paid foreign labour. However, major companies and business groups counter that the visas help fill positions for which qualified US workers are unavailable.
Read: US to Expand Travel Ban to Over 30 Countries
Trump’s order bars new H-1B recipients from entering the United States unless their sponsoring employer pays the $100,000 fee. The administration has clarified that the policy does not apply to current H-1B holders or applicants who filed before September 21.
In the order, Trump cited his authority under federal immigration law to restrict entry when it conflicts with US interests. California’s lawsuit disputes that justification, calling the fee excessive and unlawful.
