20 states challenge Trump’s $100,000 H-1B visa fee in court
States say the policy breaks federal law and the Constitution, sidestepping proper rulemaking while overstepping powers granted by Congress.
Washington: Twenty US states have filed a lawsuit against the Trump administration over its decision to impose a steep $100,000 fee on new H-1B visa petitions, calling the move unlawful and warning that it could severely disrupt essential public services across the country.
The legal challenge targets a policy introduced by the Department of Homeland Security (DHS) that dramatically increases the cost for employers seeking to hire high-skilled foreign workers through the H-1B visa programme. This visa route is widely used by hospitals, universities, public schools and research institutions to fill specialised roles that often struggle to attract enough domestic workers.
Leading the lawsuit is California Attorney General Rob Bonta, whose office argues that the administration lacks the legal authority to impose such a fee without congressional approval or proper rulemaking. The states contend that the policy violates the Administrative Procedure Act as well as the US Constitution by bypassing mandatory procedures and exceeding powers granted by Congress.
DHS began applying the policy to H-1B petitions filed after September 21, granting the Secretary of Homeland Security broad discretion to decide which applications would be subject to the fee and which might qualify for exemptions.
While government and non-profit employers — including schools, universities and hospitals — are generally exempt from the annual H-1B cap, the attorneys general argue that the new fee would still have far-reaching consequences. They say it would discourage institutions from hiring much-needed professionals, particularly in education and healthcare, where staffing shortages are already critical.
The lawsuit highlights alarming workforce gaps across the country. Shortages were especially acute in special education, physical sciences, English as a Second Language (ESL) or bilingual education, and foreign language teaching. State officials warn that adding a $100,000 fee to the hiring process could force schools and universities to abandon recruitment efforts altogether.
Healthcare systems face similar pressures. Many hospitals and clinics rely on internationally trained doctors, nurses, and medical researchers to maintain services, particularly in rural and underserved areas. The states argue that the fee would further strain these systems, potentially affecting patient care and public health outcomes.
The H-1B visa programme has long been a key pathway for skilled foreign workers, including large numbers of Indian professionals employed in technology, healthcare, engineering and academic research. Employers argue that these workers complement, rather than replace, the domestic workforce by filling specialised roles that are difficult to staff locally.
In their court filing, the states assert that Congress has never authorised DHS to impose such an extraordinary fee and that doing so through a presidential proclamation undermines the separation of powers. They are asking the court to block the policy, arguing that it threatens economic growth, public services and America’s ability to attract global talent.
As the legal battle unfolds, universities, hospitals and public agencies across the US are watching closely, concerned that the outcome could reshape how — and whether — they are able to recruit skilled professionals from abroad in the years ahead.