US States Challenge Trump Administration’s $100,000 H-1B Fee Over Fears For Schools And Hospitals

More than 20 US states have moved to block the Trump administration’s proposed $100,000 fee on H-1B visas, warning that the measure could severely disrupt schools, hospitals and other critical public institutions across the country.

The statement that the unprecedented fee would effectively shut public employers out of the programme and choke a vital pipeline of skilled foreign talent.

The challenge is particularly significant for Indian professionals, who comprise a dominant share of H-1B visa holders and play a crucial role in the healthcare, education, research, and technology sectors in the United States.

States contend that public institutions, especially government and non-profit bodies, are ill-equipped to absorb such a steep cost per hire.

The states have filed a multistate amicus brief in support of plaintiffs in Global Nurse Force et al v Trump, urging the US District Court for the Northern District of California to issue a preliminary injunction against the policy.

The brief argues that the fee is unlawful, contrary to public interest, and likely to aggravate labour shortages while weakening the economy.

California Attorney General Rob Bonta said the policy imposes ‘unnecessary and unlawful financial burdens’ on public employers, leaving essential positions unfilled.

He added that states would continue to fight to protect universities, schools and hospitals that rely on global talent.

Impact on Education and Healthcare

According to the brief, the United States is already grappling with a nationwide teacher shortage, with nearly three-quarters of school districts reporting difficulties in filling vacancies during the 2024–25 academic year.

Educators form the third-largest occupational group among H-1B holders, and hundreds of colleges and universities depend on them for teaching and research. States warn that the added fee could lead to larger class sizes, fewer course offerings and cuts to academic programmes.

Hospitals face similar risks. The brief notes that healthcare systems rely heavily on H-1B physicians, surgeons and nurses, particularly in underserved communities.

With the US projected to face a shortage of 86,000 physicians by 2036, states caution that the fee could make hiring financially impossible for many facilities, leading to staffing crises and reduced patient care.

Beyond public services, the states highlight that H-1B workers and their families contribute an estimated $86 billion annually to the US economy through spending and taxes.

The outcome of the case could significantly affect Indian professionals’ access to public-sector roles in the years ahead.

Also Read: Trump Shakes H-1B System; Ends Lottery To Prioritise High-Skill, High-Pay Foreign Talent