A group of states said they are suing Donald Trump’s administration to block a $100,000 fee on any new applications for H-1B visas, which allow U.S. employers to hire skilled foreign workers, Bloomberg reported.
The lawsuit, which is expected to be filed Friday, alleges that the fee creates a costly and illegal barrier to employers using the popular visa program and that the administration did not follow the proper rulemaking process in adopting the policy. California Attorney General Rob Bonta and Massachusetts Attorney General Andrea Joy Campbell are leading the case.
“As the fourth largest economy in the world, California knows that when skilled talent from around the world joins our workforce, it moves our state forward,” Bonta said in a statement.
“The Trump administration thinks it can raise costs on a whim, but the law says otherwise.”
The lawsuit would be at least the third challenge to the fee hikes announced by Trump in September, but the first by US states. The U.S. Chamber of Commerce filed suit in October, as did the Global Nurses Agency and several unions. Both cases are ongoing.
Why Trump is charging a $100,000 fee for H-1B visas
The H-1B visa program is the cornerstone of employment-based immigration. It allows US-based companies to hire college-educated foreign workers for specialized occupations. Trump announced the overhaul of the program in September, arguing that abuse of the H-1B pathway had displaced American workers.
H-1B visas are granted based on a lottery system, but are primarily used by the tech industry. Companies with the largest number of H-1B visas include Amazon, Tata Consultancy Services Ltd., Microsoft, Meta Platforms Inc. and Apple Inc., according to the US government, as reported by Bloomberg.
Top prosecutors suing to block the fee argued it would be particularly damaging in key public sectors, including education and health.
“The administration’s unlawful attempt to destroy this program will make it harder for New Yorkers to get health care, disrupt our children’s education and hurt our economy,” New York Attorney General Letitia James said in a statement.
In addition to California, Massachusetts and New York, the lawsuit also includes Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, North Carolina, New Jersey, Oregon, Rhode Island, Vermont, Washington and Wisconsin as challengers to the fee.
(With inputs from Bloomberg)
