Twenty US states, led by California, have filed a lawsuit against the Trump Administration’s decision to impose a $100,000 fee on new H-1B visa petitions. The states argue that this policy is unlawful and will harm essential public services like healthcare and education.

California Attorney General Rob Bonta stated that the administration lacks the authority to impose this fee, which will exacerbate labour shortages in key sectors.

“As the world’s fourth largest economy, California knows that when skilled talent from around the world joins our workforce, it drives our state forward,” Bonta said, IANS reported.

“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 labour shortages in key sectors,” he added.

Twenty US states have filed a lawsuit challenging the Trump Administration’s decision to impose a $100,000 fee on new H-1B visa petitions, arguing that it violates the Administrative Procedure Act and the US Constitution. The states claim the fee exceeds congressional authority and bypasses required rulemaking, as fees for the H-1B program have historically been limited to administrative costs.

As per the IANS reports, currently, employers pay $960 to $7,595 in combined fees for initial H-1B petitions. The H-1B program allows US employers to hire foreign workers in specialty fields, with caps of 65,000 visas for private-sector workers and 20,000 for advanced degree holders. Employers must certify that hiring H-1B workers won’t harm US workers’ wages or conditions.