California and Massachusetts are preparing to sue the Trump administration over its new $100,000 H-1B visa application fee, arguing the measure imposes an unlawful burden on employers and was enacted without following required rulemaking procedures.

The lawsuit, expected to be filed Friday, marks the first legal challenge to the fee by U.S. states. It follows lawsuits filed in October by the U.S. Chamber of Commerce and a coalition of labor unions and staffing firms, which are still pending.

The H-1B visa program allows U.S.-based employers to hire foreign workers in specialized fields. Trump announced a sweeping overhaul of the program in September, claiming the system had been exploited at the expense of American workers.