A group of US states led by California has filed a lawsuit challenging President Donald Trump’s plan to impose a $100,000 fee on employers seeking to hire foreign workers under the H-1B visa programme, escalating legal opposition to the controversial measure.
The lawsuit, filed in federal court in Boston, is at least the third legal challenge to the fee, which Trump announced in September as part of a broader effort to curb high-skilled immigration. The fee represents a sharp increase from current H-1B-related costs, which typically range between US$2,000 and US$5,000 per visa application.
Joining California in the suit are New York, Massachusetts, Illinois, New Jersey and Washington, states that host large technology, healthcare and research sectors heavily dependent on skilled foreign labour.
The states argue that the fee would significantly disrupt local economies, burden employers and undermine innovation by sharply restricting access to specialised talent.
Business and labour opposition
The legal challenge adds to growing resistance from business groups and civil society organisations. The US Chamber of Commerce, the country’s largest business lobby, has filed a separate lawsuit against the policy, arguing that the administration exceeded its legal authority.
A coalition of labour unions, employers and religious organisations has also brought its own case, contending that the fee would harm workers, families and industries reliant on the programme.
A federal judge in Washington, DC, is scheduled to hold a hearing next week in the Chamber of Commerce’s lawsuit.
Impact on tech sector
The H-1B visa programme allows US employers to hire foreign workers in specialised fields such as technology, engineering, medicine and academia. The tech industry particularly in California’s Silicon Valley is among the largest users of the visas.
Industry groups warn that the steep fee would effectively price many companies out of the programme, particularly startups, universities and non-profit research institutions.
Critics say the measure amounts to a de facto ban on new H-1B visas, undermining the programme without congressional approval.
Administration’s position
Under Trump’s executive order, new H-1B visa holders are barred from entering the United States unless their sponsoring employer pays the US$100,000 fee. The administration has said the requirement does not apply to existing H-1B holders or applicants who filed before September 21.
The White House has defended the policy as a way to prioritise American workers and ensure that companies rely on foreign labour only when absolutely necessary.
Administration officials argue that employers willing to pay the fee demonstrate a genuine need for specialised skills not readily available in the domestic workforce.
Legal uncertainty
Legal experts say the lawsuits could delay or block implementation of the policy, raising questions about the administration’s authority to impose such a dramatic fee increase without congressional approval.
Federal courts have previously scrutinised Trump-era immigration measures, with mixed outcomes, particularly when executive actions were seen to bypass existing statutes.
Until the cases are resolved, uncertainty remains for employers and prospective H-1B applicants planning to enter the United States in the coming months.
