US businesses and law firms are preparing to sue the Trump administration over its decision to impose a substantial fee on the hiring of foreign workers. President Trump, through a Proclamation, has imposed a $100,000 H-1B visa petition fee to be paid by a US employer before hiring a foreign worker.
According to Bloomberg, the US Chamber of Commerce, the country’s largest business lobby, is soliciting support from its members for a lawsuit against the Trump administration over its changes to the visa system for skilled foreign workers.
The US Chamber of Commerce includes major companies like Amazon.com Inc., Alphabet Inc., and Meta Platforms Inc. among its members.
Legal Lawsuits
California is also exploring its legal options after President Donald Trump imposed a new $100,000 cost on some high-skilled worker visas frequently utilized by the state’s tech industry, as acknowledged by Attorney General Rob Bonta’s office to POLITICO.
Nearly 20% of Indian immigrants live in California. Andri Boiko, founder & CEO of Garant IN, says, “I see the short-term impact playing out in legal challenges from U.S. companies who rely on Indian talent, because so many ongoing tech projects and client engagements in the U.S. simply can’t run without our expertise and presence.”
California is one of the main contributors to the world economy. California has surpassed Japan to become the world’s fourth-largest economy, continuing to dominate and grow faster than other top economies. California’s nominal GDP reached $4.1 trillion, surpassing Japan’s $4.02 trillion, and placing California behind only the United States, China, and Germany in global rankings.
California’s tech industry, crucial for the state’s economy and tax revenues, is particularly affected by Trump’s modifications to H-1B visas due to its dependence on skilled foreign workers from India and China. Data indicates that California topped the nation in H-1B beneficiaries during the 2025 fiscal year.
“This latest move will harm our businesses and make our country less competitive in science, technology, engineering, and medicine — at a time when we can’t afford to fall behind”, Bonta spokesperson Elissa Perez said in a statement to POLITICO.
According to POLITICO, the industry representatives in Washington are also weighing whether to sue over the new $100,000 H-1B fees as they quietly consider their next moves.
Bloomberg first reported the legal review, where it stated that California’s top lawyer slammed the Trump administration for adding a $100,000 petition fee on the widely used H-1B visa program for skilled workers, saying it creates “uncertainty and unpredictability” for businesses in his state and that he is reviewing its legality.
“The abruptness of this policy, paired with the lack of a meaningful transition period, creates uncertainty not only for Indian professionals but also for the companies and clients that depend on their high-level skills,” adds Boiko.
H-1B Wage-Based Selection
The introduction of the H-1B visa petition fee of $100,000 for new foreign workers is not the only deterrent for US companies. The US is likely to announce new rules for the selection of H-1B visas for foreign workers.
The U.S. Department of Homeland Security has proposed prioritizing H-1B visas for higher-paid and higher-skilled foreign workers.
The H-1B visa new selection process and $100,000 petition fee are the two major changes set to affect the hiring of foreign workers by US companies beginning now, and aligning with the 2027 H-1B season.
“When I look at the bigger picture, I am concerned about the long-term fallout. If these restrictions and costs persist, more Indian companies will be forced to shift advanced tech projects out of the U.S. and into hubs in the UAE, Europe, or closer to home, ensuring continued growth while bypassing barriers in the U.S. market.
Capital and talent cannot be caged — if you build mountains in their path, business finds a way around. Ultimately, it is the U.S. that stands to lose: not just the innovative edge that Indian tech professionals provide, but also the flow of revenue, taxes, and jobs that follow our expertise,” adds Boiko.