20 US states sue Trump administration over $100,000 H-1B visa fee

Twenty US states have sued the Trump administration over a $100,000 fee on new H-1B visa petitions, calling it illegal and harmful to public services. The states say the move worsens labour shortages in education and healthcare.

Washington: Twenty US states filed a lawsuit challenging the Trump Administration’s decision to impose a $100,000 fee on new H-1B visa petitions, arguing the policy is unlawful and threatens essential public services.

The lawsuit targets a policy implemented by the Department of Homeland Security that sharply increases the cost for employers seeking to hire high-skilled foreign workers under the H-1B visa programme, widely used by hospitals, universities and public schools.

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California Attorney General Rob Bonta, whose office is leading the case, said the administration lacked authority to impose the fee.

“As the world’s fourth largest economy, California knows that when skilled talent from around the world joins our workforce, it drives our state forward,” Bonta said.

“President Trump’s illegal $100,000 H-1B visa fee creates unnecessary — and illegal — financial burdens on California public employers and other providers of vital services, exacerbating labour shortages in key sectors,” he said.

President Trump ordered the fee through a proclamation issued on September 19, 2025. DHS applied the policy to H-1B petitions filed after September 21 and gave the Secretary of Homeland Security discretion to determine which applications are subject to the fee or qualify for exemptions.

The states argue the policy violates the Administrative Procedure Act and the US Constitution by bypassing required rulemaking and exceeding congressional authority. They say fees tied to the H-1B programme have historically been limited to the cost of administering the system.

Employers filing initial H-1B petitions currently pay between $960 and $7,595 in combined regulatory and statutory fees.

Under federal law, employers must certify that hiring H-1B workers will not adversely affect the wages or working conditions of US workers. Congress caps most private-sector H-1B visas at 65,000 annually, with an additional 20,000 reserved for applicants holding advanced degrees.

Government and non-profit employers, including schools, universities and hospitals, are generally exempt from the cap.

The attorneys general say the new fee would worsen staffing shortages, particularly in education and healthcare.

During the 2024–2025 school year, 74 per cent of US school districts reported difficulty filling open positions, especially in special education, physical sciences, ESL or bilingual education, and foreign languages. Educators are the third-largest occupational group among H-1B visa holders.

Healthcare providers also rely heavily on the programme. Nearly 17,000 H-1B visas were issued for medicine and health occupations in fiscal year 2024, about half to physicians and surgeons. The United States is projected to face a shortage of 86,000 physicians by 2036.

The lawsuit was filed by Bonta and Massachusetts Attorney General Andrea Joy Campbell, 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 programme is a key pathway for skilled foreign workers, including large numbers of Indian professionals employed in technology, healthcare and academic research.ceeded the authority granted by Congress.