Twenty US states have filed a lawsuit against the Trump administration, contesting its decision to impose a $100, 000 fee on new H-1B visa applications. They argue the policy is unlawful, violates the Constitution, and endangers essential public services like education and healthcare by exacerbating worker shortages.
The fee, introduced by the Department of Homeland Security (DHS) via an executive order on September 19, 2025, applies to H-1B petitions filed after September 21. H-1B visas are crucial for hospitals, universities, and schools to hire skilled foreign workers. Current fees range from $960 to $7, 595 per application—making the new rule a massive increase that critics call an "illegal financial burden."
States Decry Impact on Key Sectors
California Attorney General Rob Bonta led the charge, joined by Massachusetts and 18 others including Arizona, Colorado, New York, New Jersey, and Washington. "The administration has no authority to impose tariffs like this, " Bonta said. "As the world's fourth-largest economy, California knows that skilled talent from around the globe propels us forward."
The states claim the policy was enacted without proper procedure, breaching US law. Bonta warned it will worsen shortages: 74% of schools reported teacher deficits in 2024-25, while nearly 17, 000 H-1B visas went to doctors and healthcare professionals in 2024. Projections show a shortfall of 86, 000 doctors by 2036.
Broader Implications for US Workforce
H-1B visas are vital for Indian professionals in tech, healthcare, and research. Critics argue the fee will only create problems for America, driving away talent when schools and hospitals need it most. The Trump administration has not yet responded to the suit.