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, claiming the policy is illegal and threatens essential public services.
The lawsuit targets a Department of Homeland Security policy that significantly raises the cost for employers seeking to hire high-skilled foreign workers under the H-1B visa programme.
Hospitals, universities, and public schools widely use this programme to fill critical positions.
California Attorney General Rob Bonta, leading the case, stated that the administration exceeded its authority by imposing the fee. “President Trump’s illegal $100,000 H-1B visa fee creates unnecessary financial burdens on public employers and other vital service providers, worsening labour shortages in key sectors,” he said.
President Trump introduced the fee through a proclamation on 19 September 2025. He applied it to H-1B petitions filed after 21 September.
The Department of Homeland Security retains discretion to determine which applications are subject to the fee or qualify for exemptions.
Legal Arguments Against the Fee
The states argue that the policy violates the Administrative Procedure Act and the US Constitution. They contend that it bypasses required rulemaking and exceeds congressional authority. Historically, the government has limited H-1B fees to covering administrative costs, ranging from $960 to $7,595.
Employers filing H-1B petitions must certify that hiring foreign workers will not negatively affect US wages or working conditions.
The government caps most private-sector visas at 65,000 annually and reserves an additional 20,000 for applicants with advanced degrees. Public-sector employers, such as hospitals, schools, and universities, are generally exempt from the cap.
Attorneys general warned that the fee could exacerbate staffing shortages in education and healthcare. During the 2024–2025 school year, 74 per cent of US school districts reported difficulty filling positions, particularly in special education, sciences, language instruction, and foreign languages.
The US issued nearly 17,000 H-1B visas in fiscal year 2024 for medicine and health occupations, granting about half to physicians and surgeons, while projections indicate the country will face a shortfall of 86,000 physicians by 2036.
The lawsuit is led by Bonta and Massachusetts Attorney General Andrea Joy Campbell, and joined by officials from Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, Nevada, North Carolina, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.
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