Lawsuit Filed by 20 States Against Trump Over $100,000 H-1B Visa Fee

A coalition of twenty US states has initiated a lawsuit against the Trump administration concerning the imposition of a $100,000 fee for new H-1B visa applications. The states contend that this fee is illegal and detrimental to essential public services, asserting that it will exacerbate labor shortages while imposing an unsettling financial burden on public institutions.

This legal action targets a policy enacted by the Department of Homeland Security, which substantially escalates costs for employers seeking to hire highly skilled foreign workers under the H-1B visa program. This program is crucial for filling specialized roles within hospitals, universities, research facilities, and public schools.

California Attorney General Rob Bonta, who is spearheading the lawsuit, emphasized that the Trump administration lacks the legal authority to enforce such a fee. He highlighted the importance of skilled professionals from diverse backgrounds in bolstering the US economy, especially in states such as California.

Bonta warned that this exorbitant H-1B visa fee places illegal financial pressure on public bodies, including schools and healthcare systems. He raised concerns that this policy could worsen existing personnel shortages in critical areas, including education, healthcare, and scientific research.

The fee was mandated by President Trump in a proclamation dated September 19, 2025. It is applicable to H-1B applications submitted after September 21, offering substantial discretion to the Secretary of Homeland Security regarding fee application and potential exemptions.

The lawsuit argues that the new fee structure transgresses both the US Constitution and the Administrative Procedure Act. The states claim that the administration sidestepped the necessary rulemaking procedures and overstepped the authority granted by Congress. Historically, fees associated with H-1B visas have only covered the expenses tied to managing the program.

Currently, employers seeking initial H-1B visas face costs ranging from $960 to $7,595 due to standard statutory and regulatory fees. The abrupt escalation to $100,000 marks a significant shift, which the states argue was implemented without proper legal grounds.

Under existing federal regulations, employers are required to confirm that employing H-1B workers will not adversely affect the wages or working conditions of US workers. Additionally, Congress restricts the majority of private-sector H-1B visas to 65,000 annually, with another 20,000 reserved for applicants who possess advanced degrees. Generally, government and nonprofit employers, such as hospitals and educational institutions, are exempt from these quotas.

The lawsuit also underscores the significant staffing challenges currently confronting the nation. During the 2024–2025 academic year, nearly 75% of US school districts reported difficulties in filling vacant positions, particularly in areas such as special education, STEM subjects, bilingual education, and foreign languages. Educators constitute a major segment of H-1B visa recipients.

Healthcare facilities also rely heavily on the H-1B visa program. In the 2024 fiscal year, close to 17,000 visas were issued for health-related positions, with roughly half awarded to physicians and surgeons. Projections indicate a potential shortage of up to 86,000 doctors by 2036, raising alarms that the newly instituted fee could further complicate the healthcare landscape.

The lawsuit is being led by the attorneys general of California and Massachusetts, joined by representatives from 18 additional states including New York, Illinois, Washington, New Jersey, and Michigan. Together, they argue that the H-1B visa program is an essential channel for attracting skilled foreign workers, particularly a substantial number of Indian professionals engaged in technology, healthcare, and academia.

This legal dispute emphasizes the growing complexities around immigration policy and reflects the ongoing debate over the United States' need for highly skilled labor against the backdrop of border control.