California has taken legal action against President Donald Trump’s administration over a dramatic increase in fees for H-1B visas. The state argues that the new $100,000 fee for employers who hire skilled foreign workers is unlawful and could seriously harm the economy.
California and Other States Challenge the New Visa Fee
California Attorney General Rob Bonta announced that the state, along with 19 other states, has filed a lawsuit in federal court in Massachusetts. The lawsuit aims to block the Trump administration’s decision to sharply raise the cost of H-1B visas.
Speaking at a press conference, Bonta said California depends heavily on global talent to fuel innovation and economic growth.
“California knows that skilled workers from around the world help our economy grow,” Bonta said. “The federal government cannot raise fees randomly without following the law.”
What Is the H-1B Visa Program?
The H-1B visa program was created in 1990 and allows U.S. employers to hire foreign workers for specialized jobs. These jobs are usually in fields like technology, engineering, healthcare, and education.
Until now, employers paid only a few hundred dollars in annual fees. Large companies that rely heavily on foreign talent paid an additional $4,000. However, an executive order signed by Trump in September increased that fee to a massive $100,000.
Trump Administration’s Reason for the Fee Hike
Commerce Secretary Howard Lutnick said the goal of the higher fee is to discourage companies from hiring foreign workers instead of Americans.
“The message is simple,” Lutnick said. “Stop bringing in people to take our jobs.”
Why California Says the Fee Is Illegal
Bonta argued that federal law only allows visa fees to cover the cost of running the program. He said the $100,000 charge is far higher than any reasonable administrative cost.
According to the lawsuit, the new fee would hurt businesses, workers, and the public by making it nearly impossible for many employers to hire needed talent.
White House Defends the Policy
White House spokesperson Taylor Rogers said the administration believes the fee increase is legal and necessary.
She said the policy puts American workers first by stopping companies from abusing the visa system and lowering wages. The administration also said the change would bring more certainty to employers who truly need foreign talent.
Impact on California’s Economy
California leads the nation in H-1B visa use. In the most recent fiscal year, the state issued about 21,600 H-1B visas — nearly double the number issued in Texas, the next highest state.
Major California cities like San Jose, Santa Clara, and San Francisco rank among the top locations for H-1B workers. Many of these workers are software engineers earning average salaries above $150,000.
About 80% of California’s H-1B workers live in the Bay Area.
Schools and Hospitals Could Be Hit Hard
Bonta also warned that the new fee would seriously affect schools and hospitals.
Nearly 30,000 teachers in the U.S. rely on H-1B visas, and more than 17,000 medical professionals received these visas in 2024 alone. Many schools, colleges, and healthcare facilities cannot afford a $100,000 fee.
Bonta said the policy could worsen existing shortages of teachers and doctors.
Ongoing Legal Battles Over Immigration
This lawsuit is part of a broader challenge to Trump’s immigration policies during his second term. These policies have included mass deportations, tighter asylum rules, and increased arrests of migrants.
Bonta said this is the 49th lawsuit he has filed against the Trump administration. Due to a recent Supreme Court ruling, any court decision could apply only to the 20 states involved in the case.
Debate Over the H-1B Program Continues
Supporters of the H-1B program, including Elon Musk and Nvidia CEO Jensen Huang, argue that it helps U.S. companies hire top global talent and stay competitive.
Critics claim the program takes jobs away from American workers.
Trump himself has changed his stance over the years, once calling the program “cheap labor” and later praising it as beneficial, noting that his own businesses employed H-1B workers.
Conclusion
California’s lawsuit against the $100,000 H-1B visa fee highlights the growing conflict between state governments and federal immigration policies. As the legal battle unfolds, the outcome could have major consequences for technology companies, hospitals, schools, and the future of skilled immigration in the United States.
