Twenty US states have filed a lawsuit against the Trump Administration over a $100,000 fee imposed on new H-1B visa petitions. The states argue that the policy is unlawful and threatens essential public services, including education and healthcare. California Attorney General Rob Bonta, whose office is leading the lawsuit, said the administration lacked authority to impose such a high fee. “President Trump’s illegal $100,000 H-1B visa fee creates unnecessary financial burdens on public employers and providers of vital services, worsening labor shortages,” Bonta said.
Fee affects public employers
The Department of Homeland Security (DHS) implemented the fee in September 2025, applying it to H-1B petitions filed after September 21. DHS gave the Secretary discretion to determine which applications are subject to the fee or qualify for exemptions. The policy affects hospitals, schools, universities, and other public service providers that rely on skilled foreign workers.
Legal grounds of the lawsuit
The states claim the fee violates the Administrative Procedure Act and the US Constitution. Historically, H-1B fees have been limited to administrative costs. They argue that the $100,000 fee exceeds the authority granted by Congress and bypasses proper rulemaking procedures. The H-1B program allows US employers to hire skilled foreign workers. Most private-sector visas are capped at 65,000 annually, with 20,000 additional visas for advanced-degree holders. Government and nonprofit institutions, such as hospitals and schools, are generally exempt from the cap.
The states warn the fee will worsen staffing shortages. In 2024–2025, 74% of US school districts reported difficulty filling teaching positions in special education, sciences, ESL, and foreign languages. In healthcare, nearly 17,000 H-1B visas were issued for medicine and health occupations in 2024, with half going to physicians and surgeons. The US is projected to face a shortage of 86,000 physicians by 2036.
States joining the lawsuit
The lawsuit is led by California and Massachusetts, and joined by attorneys general from Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, Nevada, North Carolina, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, and Wisconsin. The H-1B visa program is a critical pathway for skilled foreign professionals, including many Indian workers in technology, healthcare, and academic research. The states argue that the new fee threatens access to this talent, which is vital for essential public services and economic growth.
