A Boston lawsuit challenges Trump’s H-1B fee hike, which significantly hikes visa costs for firms.
California and 19 other US states filed a lawsuit on Friday to stop President Donald Trump’s $100,000 price for new H-1B visas for highly qualified foreign workers.
The lawsuit filed in federal court in Boston is at least the third to challenge the charge announced by Trump in September, which significantly raises the cost of acquiring H-1B visas. Currently, employers pay fees ranging from $2,000 to $5,000.
According to an announcement from California Attorney General Rob Bonta’s office, Trump lacks the authority to impose the tax, and it violates federal law, which authorises immigration authorities to collect only fees necessary to cover the costs of managing visa programs.
The H-1B program enables US firms to hire foreign workers in specialised sectors. The tech industry, with numerous enterprises headquartered in California, is especially reliant on visa holders.
Bonta, a Democrat, claimed the $100,000 charge would impose needless financial constraints on suppliers of critical services such as education and healthcare, aggravating labour shortages and risking service cuts.
California’s case also includes New York, Massachusetts, Illinois, New Jersey, and Washington.
In response to other cases, the White House stated that the increased charge is a lawful exercise of Trump’s powers and will prevent firms from misusing the H-1B program.
Critics of H-1B visas and other work visas claim they are frequently exploited to replace American workers with foreign labour willing to work for less. However, industry groups and major corporations have argued that H-1B visa holders are an important way to solve a shortfall of skilled American workers.
The United States Chamber of Commerce, the country’s largest business lobby, and a coalition of unions, employers, and religious organisations have filed separate lawsuits opposing the tax. Next week, a court in Washington, DC, will hear arguments in the Chamber’s complaint.
Trump’s order prevents new H-1B beneficiaries from entering the United States unless the firm sponsoring their visa has paid the $100,000 fee. The government has stated that the decision does not apply to current H-1B holders or those who applied before September 21.
In the order, Trump used his authority under federal immigration law to prohibit the entry of some foreign nationals who would be damaging to US interests.
Bonta’s office stated on Friday that the $100,000 charge substantially exceeds the cost of processing H-1B petitions, making it illegal. It further stated that the US Constitution prohibits Trump from unilaterally establishing levies to create revenue for the United States, a function reserved for Congress.