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, arguing that the move is unlawful, unconstitutional, and would severely harm essential public services such as education and healthcare.
The lawsuit targets a policy implemented by the Department of Homeland Security (DHS) that dramatically increases the cost for employers seeking to hire highly skilled foreign workers under the H-1B visa programme—a system widely used by public schools, universities, hospitals, and research institutions.
Leading the legal challenge, California Attorney General Rob Bonta said the Trump administration lacked the authority to impose such a 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.
He added that the fee would place illegal financial burdens on public institutions already struggling with staffing shortages.
“President Trump’s illegal $100,000 H-1B visa fee creates unnecessary—and unlawful—financial strain on California’s public employers and providers of vital services, worsening labour shortages in key sectors,” Bonta said.
How the Fee Was Imposed
President Donald Trump ordered the fee through a proclamation issued on September 19, 2025. DHS applied the policy to H-1B petitions filed after September 21, granting the Secretary of Homeland Security broad discretion to decide which applications are subject to the fee or eligible for exemptions.
The states argue that the policy violates the Administrative Procedure Act and the US Constitution, as it bypassed mandatory rulemaking procedures and exceeded the authority granted by Congress.
They also contend that H-1B-related fees have historically been limited to covering administrative costs, not generating revenue or acting as a deterrent.
Currently, employers filing initial H-1B petitions pay between $960 and $7,595 in combined regulatory and statutory fees—making the proposed $100,000 charge an unprecedented increase.
Impact on Schools and Healthcare
The attorneys general warn that the fee would worsen staffing shortages, particularly in education and healthcare—two sectors already facing critical workforce gaps.
During the 2024–2025 school year, 74 per cent of US school districts reported difficulties filling open positions, especially in special education, physical sciences, ESL and bilingual education, and foreign languages. Educators represent the third-largest occupational group among H-1B visa holders.
Healthcare providers are similarly dependent on the programme. In fiscal year 2024, nearly 17,000 H-1B visas were issued for medical and health occupations, about half of them to physicians and surgeons. The United States is projected to face a shortage of 86,000 doctors by 2036, according to workforce estimates.
Who Filed the Lawsuit
The lawsuit was jointly filed by California Attorney General Rob 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.
Why the H-1B Programme Matters
The H-1B visa programme remains a key pathway for skilled foreign professionals, including a large number of Indian nationals working in technology, healthcare, and academic research.
Under federal law, employers must certify that hiring H-1B workers will not adversely affect the wages or working conditions of US workers. Most private-sector visas are capped at 65,000 annually, with an additional 20,000 reserved for advanced-degree holders, while government and non-profit employers are generally exempt from the cap.
The states argue that the new fee undermines this framework and exceeds the authority granted by Congress.