The attorneys general of 20 states, including California and New York, filed a lawsuit on March 15, 2025, to block the Trump administration’s decision to impose a $100,000 fee on H-1B visas for skilled foreign workers. This proclamation, signed by President Donald Trump in September 2024, has raised concerns among employers and state officials regarding its impact on the labor market and the economy.
The H-1B visa program is designed to allow employers to hire foreign workers who possess specialized skills in fields where qualified U.S. workers are unavailable, particularly in the science and technology sectors. The new fee, which took effect on September 21, 2024, has drawn sharp criticism from various stakeholders, who argue that it could significantly hinder the ability of companies to attract top talent.
California and Massachusetts are leading the lawsuit, which was submitted to the U.S. District Court for the District of Massachusetts. In a statement, California Attorney General Rob Bonta articulated the potential consequences of the fee, stating, “The $100,000 visa fee is devastating for all states, including California, and threatens the quality of education, health care and other core services available to our residents.”
This legal challenge follows an earlier suit filed in October 2024 by a coalition of unions, educators, and religious organizations, who claimed that the fee would negatively affect hospitals, schools, churches, and small businesses. The rift caused by the new policy within Trump’s support base highlights the conflicting interests surrounding immigration reform. While immigration hard-liners endorse the fee as a means to promote the hiring of American workers, many in the tech industry view it as a barrier to competitiveness and innovation.
Prominent tech companies such as Meta, Google, and Apple have been among the largest employers of H-1B visa holders in 2024, according to data from U.S. Citizenship and Immigration Services. The program is also utilized by educational institutions to recruit educators and researchers from abroad. Critics argue that the new fee will complicate the already competitive process for obtaining H-1B visas, which are capped at 85,000 annually by Congress.
The introduction of the $100,000 fee adds substantial costs for employers considering the H-1B program, in addition to existing legal and administrative expenses. As the lawsuit progresses, the states involved, which include Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, Nevada, North Carolina, New Jersey, Oregon, Rhode Island, Vermont, Washington, and Wisconsin, seek a judicial declaration to render the policy unlawful and prevent its enforcement.
As of now, the departments of Homeland Security, State, Labor, and Justice have not responded to inquiries regarding the lawsuit. The outcome of this legal battle could have significant implications for both foreign workers and U.S. employers, particularly in sectors that rely heavily on specialized skills and talent.
