A group of US states announced they will sue the Trump administration to block a $100,000 fee for any new applications for H-1B visas, which allow US employers to hire skilled foreign workers.
The lawsuit, which is expected to be filed on Friday, argues that the fee creates an expensive and illegal barrier for employers to use the popular visa program, especially in the public sector. They also assert that the amount was set arbitrarily and exceeds the rate-setting authority granted by Congress. The case is led by California Attorney General Rob Bonta and Massachusetts Attorney General Andrea Joy Campbell.
“What Congress has never done is authorize a president to impose a six-figure surcharge designed to dismantle the program completely,” Bonta said during a press conference announcing the lawsuit. “The bottom line is: No presidential administration can rewrite immigration law.”
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The lawsuit would be at least the third challenging the rate increase, announced by Trump in September, but the first complaint by U.S. states. The U.S. Chamber of Commerce filed suit in October, as did a global nurse staffing agency and several unions. Both cases are ongoing.
White House spokeswoman Taylor Rogers defended the fee as legal and called it “an initial, necessary and incremental step toward needed reforms to the H-1B program.”
“President Trump promised to put American workers first, and his sensible action on H-1B visas does just that, discouraging companies from abusing the system and undercutting American wages, while providing certainty for employers who need to bring in top talent from abroad,” she said in a statement.
The H-1B visa program is a fundamental piece of employment-based immigration. It allows companies in the U.S. to hire foreign, college-educated workers for specialized occupations. Trump announced an overhaul of the program in September, arguing that abuse of the H-1B pathway has displaced American workers.
H-1B visas are awarded through a lottery system but are primarily used by the technology industry. Companies with the highest number of H-1B visas include Amazon, Tata Consultancy Services Ltd., Microsoft, Meta Platforms Inc. and Apple Inc., according to the U.S. government.
Attorneys general suing to block the tax argue it would be especially harmful in key public sectors, including education and health care.
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“The administration’s illegal attempt to ruin this program will make it harder for New Yorkers to access healthcare, harm 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, states contesting the tax include Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, North Carolina, New Jersey, Oregon, Rhode Island, Vermont, Washington and Wisconsin.
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