20 US States Sue Trump Over $100,000 H-1B Visa Fee, Saying No President Can Override the Constitution

President Donald Trump’s decision to impose a $100,000 fee on new H-1B visa applications is facing major legal resistance, with California leading a coalition of 19 other US states in a lawsuit that questions the president’s authority to levy such a charge.

The legal challenge marks a significant escalation in opposition to a policy that dramatically raises the cost of hiring high-skilled foreign professionals and threatens industries ranging from technology and healthcare to higher education and research.

CHALLENGE TO SEPTEMBER EXECUTIVE ORDER

The lawsuit targets a fee announced in September that dwarfs existing H-1B visa costs, which typically range between $2,000 and $5,000. Critics argue the surcharge is designed not to fund visa processing but to effectively dismantle the program.

This is at least the third legal challenge to the policy, which opponents say endangers a visa system heavily relied upon by US tech firms, hospitals, universities, and research institutions.

PRESIDENTIAL AUTHORITY UNDER SCRUTINY

The case is being led by California Attorney General Rob Bonta, who argues that federal immigration law does not permit the executive branch to impose revenue-generating taxes through unilateral action.

According to Bonta’s office, immigration agencies are legally allowed to collect only those fees necessary to cover administrative costs—not to create financial barriers that reshape immigration policy.

“No presidential administration can rewrite immigration law,” Bonta said at a press conference in San Francisco. “No president may disregard the Constitution, the law, or the coequal branch of government of congress.”

WHAT THE H-1B PROGRAM PROVIDES

The H-1B visa program allows US employers to hire foreign workers in specialized occupations that typically require a bachelor’s degree or higher. While technology companies are the most prominent users of the program, hospitals, colleges, school districts, and research institutions also depend heavily on H-1B professionals.

California, home to Silicon Valley and numerous research universities, is among the states most affected by changes to the program.

LABOR SHORTAGE WARNINGS

Bonta warned that the six-figure fee would impose severe financial strain on both public and private employers, worsening existing labor shortages and potentially forcing reductions in essential services.

He cited tens of thousands of teachers, doctors, nurses, and researchers nationwide who work under H-1B visas, emphasizing that the program supports public health systems, education, and innovation.

“Congress has refined this program—setting caps, establishing fees, strengthening enforcement, and enhancing protections,” Bonta said. “What Congress has never done is authorize a president to impose a six-figure surcharge designed to dismantle the program entirely.”

STATES JOINING THE LAWSUIT

The coalition includes New York, Massachusetts, Illinois, New Jersey, Washington, and several other states. All are represented by Democratic attorneys general.

The case is being jointly led by California Attorney General Rob Bonta and Massachusetts Attorney General Andrea Joy Campbell.

HOW THE POLICY IS BEING ENFORCED

Under the Trump administration’s order, new H-1B applicants are barred from entering the United States unless their sponsoring employer pays the $100,000 fee.

The administration has stated that applications filed before September 21, as well as current H-1B visa holders, are exempt.

The White House claims the order is justified under federal immigration law and is intended to block the entry of foreign nationals deemed harmful to US interests.

WHITE HOUSE DEFENSE AND INDUSTRY PUSHBACK

The Trump administration has defended the policy as a necessary measure to curb what it describes as abuse of the H-1B system.

Critics of the visa program, including some conservative groups, argue that it allows companies to replace American workers with lower-paid foreign labor.

Business leaders and major corporations counter that the program is essential to filling gaps in highly skilled roles where qualified US workers are in short supply.

LEGAL CHALLENGES INTENSIFY

Opposition to the fee is rapidly expanding. A federal judge in Washington, DC, is scheduled to hear arguments next week in a separate lawsuit filed by the US Chamber of Commerce.

Additional lawsuits have been filed by coalitions of labor unions, employers, and religious organizations.

“UNRELATED TO PROCESSING COSTS”

Bonta’s office argues that the $100,000 charge violates federal law because it bears no relationship to the actual cost of processing H-1B petitions.

They also contend that the US Constitution bars the president from imposing taxes to raise revenue—authority that rests exclusively with Congress.

“This is about the separation of powers,” Bonta said. “No administration can, through unilateral action, rewrite immigration law or destabilize hospitals, schools, and universities across the country.”

IMMIGRATION TENSIONS RESURFACE

The fee was introduced amid renewed tensions over immigration policy, reflecting a broader conflict between Trump’s populist base and industries that rely on skilled foreign labor.

Despite his historically tough stance on high-skilled immigration, the move has drawn criticism even from business-friendly allies.

The Department of Homeland Security did not immediately respond to requests for comment, while the Justice Department declined to comment on the lawsuit.