Twenty US States Sue to Block $100,000 H-1B Visa Fee, Citing Threat to Public Services

Washington, Dec 2025 : Twenty US states have filed a lawsuit challenging the Trump Administration’s new $100,000 fee on H-1B visa petitions, arguing that the policy is unlawful and endangers essential public services, including healthcare and education. The suit, led by California Attorney General Rob Bonta, contends that the administration overstepped its authority by imposing the fee and bypassing required regulatory procedures.

The lawsuit targets a Department of Homeland Security (DHS) policy that sharply increases the cost for employers hiring high-skilled foreign workers under the H-1B visa programme. The programme is widely used by hospitals, universities, and public schools to fill critical positions.

“As the world’s fourth-largest economy, California understands that skilled talent from around the globe strengthens our workforce and drives growth,” Bonta said. “President Trump’s illegal $100,000 H-1B visa fee imposes undue financial burdens on public employers and other essential service providers, worsening labor shortages in key sectors.”

The policy was implemented through a presidential proclamation issued on September 19, 2025, and applied to H-1B petitions filed after September 21. The DHS Secretary was granted discretion to determine which applications would be subject to the fee or qualify for exemptions.

The states argue that the policy violates the Administrative Procedure Act and the US Constitution, claiming it bypasses necessary rulemaking procedures and exceeds congressional authority. Historically, fees associated with the H-1B programme have been limited to the costs of administering the system. Under current law, employers pay between $960 and $7,595 in combined regulatory and statutory fees for initial H-1B petitions.

Federal law also requires employers to certify that hiring H-1B workers will not adversely affect wages or working conditions for US workers. Most private-sector H-1B visas are capped at 65,000 per year, 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.

Lawyers for the states warn that the new fee would intensify staffing shortages in sectors already facing critical deficits. During the 2024–2025 school year, 74 per cent of US school districts reported difficulty filling positions, particularly in special education, physical sciences, ESL, bilingual education, and foreign languages. Educators represent the third-largest occupational group among H-1B visa holders.

Healthcare also relies heavily on H-1B workers. In fiscal year 2024, nearly 17,000 H-1B visas were issued for medicine and health occupations, about half of them to physicians and surgeons. With projections estimating a shortage of 86,000 physicians by 2036, the fee could significantly exacerbate the crisis.

The lawsuit was filed jointly by Bonta and Massachusetts Attorney General Andrea Joy Campbell, 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 programme remains a key pathway for skilled foreign workers, including a large number of Indian professionals employed in technology, healthcare, and academic research. Opponents of the fee say it threatens not only domestic staffing needs but also international competitiveness and the ability of US institutions to retain top global talent.

The lawsuit underscores mounting opposition to the Trump administration’s approach, asserting that the new fee is both illegal and economically harmful, and urging a judicial halt to protect essential services and workforce stability.

(The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)