On December 12, 2025, California Attorney General Rob Bonta, leading a coalition of 20 states, filed a federal lawsuit seeking to block a controversial policy imposed by President Donald Trump that adds a $100,000 fee to new petitions for H-1B visas. The H-1B program, established in 1990, allows U.S. employers to temporarily hire foreign workers in specialty occupations requiring at least a bachelor's degree or equivalent expertise, particularly in fields like technology, engineering, healthcare, and education.
The lawsuit, filed in the U.S. District Court for the District of Massachusetts, argues that the fee is unlawful, exceeds congressional authority, and undermines the program's purpose of addressing labor shortages in critical sectors. Prior to the policy, employers typically paid between $960 and $7,595 in fees for an initial H-1B petition, covering administrative costs. The new $100,000 surcharge, implemented via a presidential proclamation signed on September 19, 2025, and effective for petitions filed after September 21, 2025, dramatically increases costs and effectively prices out many employers, especially public and nonprofit entities.
The coalition includes Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, North Carolina, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, and Wisconsin, along with California and one additional state (Nevada in some reports). All participating states have Democratic attorneys general. This marks California's 49th lawsuit against the Trump administration in 2025 alone.
Attorney General Bonta described the fee as an "illegal" barrier that exacerbates staffing crises. "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 stated in a press release. He highlighted impacts on public services, noting that nearly 30,000 educators nationwide hold H-1B visas, and in fiscal year 2024, about 17,000 visa holders worked in healthcare, including physicians and surgeons. Without these workers, Bonta warned of longer wait times, reduced access to care, and growing disparities, projecting a U.S. physician shortfall of 86,000 within a decade.
The states contend that federal law limits immigration fees to amounts necessary for program administration, as set by the Department of Homeland Security (DHS) through notice-and-comment rulemaking under the Administrative Procedure Act (APA). The proclamation bypasses this process and congressional intent, which caps annual H-1B visas at 85,000 while aiming to fill skill gaps without displacing U.S. workers.
The White House defended the policy as a lawful exercise of presidential authority to protect American jobs. Spokesperson Taylor Rogers stated that it discourages "spamming the system and driving down American wages" while providing certainty for legitimate high-skilled hires. Critics of the H-1B program, including some Trump supporters, argue it has been abused to replace U.S. workers with lower-paid foreigners.
This multistate suit is the latest in a series of challenges. The U.S. Chamber of Commerce, representing major businesses, filed a separate lawsuit in October, arguing the fee overrides congressional provisions. A coalition of unions, higher education groups, and religious organizations, along with a nurse staffing agency, have also sued, claiming harm to hospitals, schools, and small entities.
Tech companies, heavy users of H-1B visas, expressed alarm. In California, thousands of firms applied for visas in 2025, with top sponsors including Amazon, Microsoft, Meta, Google, and Apple. The fee threatens U.S. competitiveness in AI and innovation, where global talent is essential.
The policy stems from Trump's September proclamation restricting entry for new H-1B recipients unless the fee is paid. It does not affect existing visa holders, renewals, or petitions filed before September 21, 2025. Clarifications from the White House and DHS emphasized no impact on current holders' travel.
Broader context includes Trump's immigration agenda, with H-1B debates dividing his base—populists favor restrictions, while tech allies like Elon Musk advocate for attracting top talent. Trump has fluctuated, previously supporting the program but prioritizing "America First" reforms.
As of December 15, 2025, separate developments include expanded social media vetting for H-1B and H-4 applicants, requiring public profiles and potentially delaying interviews into 2026. However, these are distinct from the fee lawsuit.
The case could reach higher courts, similar to past immigration disputes. A hearing in the Chamber of Commerce suit is scheduled soon in Washington, D.C.
This lawsuit highlights tensions over high-skilled immigration, balancing labor needs, economic growth, and wage protection amid ongoing shortages in education (74% of districts reported hiring difficulties in 2024-2025) and healthcare.
