California and 19 States Challenge Trump’s $100,000 H-1B Visa Fee

California, alongside 19 other US states, has initiated a lawsuit aimed at overturning President Donald Trump‘s implementation of a $100,000 fee on new H-1B visas. This legal action, filed on October 27, 2023, seeks to block the fee that applies to highly skilled foreign workers, a category vital to the US labor market, particularly in technology and other specialty fields.

The H-1B visa program allows US employers to hire foreign professionals in roles requiring specialized knowledge. The tech industry, which boasts a significant concentration of companies in California, is notably dependent on these skilled workers. The state’s attorney general, Rob Bonta, emphasized that the new fee could severely disrupt the workforce, stating that it would deter companies from hiring the talent they need to innovate and grow.

Legal Arguments Against the Fee

The lawsuit argues that the $100,000 fee is unconstitutional and would disproportionately impact sectors that rely heavily on the H-1B program. Additionally, the states contend that the fee violates the Administrative Procedure Act, as it was enacted without proper notice and comment periods, which are typically required for such significant changes in policy.

In their complaint, the states highlight the economic repercussions of the fee. By raising the cost of H-1B visas, they assert that the Trump administration is effectively creating barriers to entry for foreign workers who contribute to the economy. According to estimates, the tech sector alone could face a talent shortage that hampers innovation and growth, potentially costing billions in lost revenue and opportunities.

Reactions from the Tech Industry

Industry leaders have expressed strong support for the lawsuit. Many companies argue that the H-1B visa program is essential for attracting top talent from around the globe. The California Technology Association released a statement affirming that the fee could lead to a “brain drain,” where skilled professionals may opt to work in countries with more favorable immigration policies.

As the lawsuit unfolds, it has drawn attention from various stakeholders, including advocacy groups that argue for fair immigration policies. They contend that the fee not only undermines the principles of the H-1B program but also sends a negative message about the United States’ openness to international talent.

The outcome of this legal challenge could have far-reaching implications for both the tech industry and broader economic policies regarding immigration. As the situation develops, many are watching closely to see how this litigation might influence the future of the H-1B visa program and its role in the US economy.