In a major legal confrontation, twenty U.S. states have filed a lawsuit challenging the Trump administration’s imposition of a $100,000 fee on new H-1B visa petitions. The coalition argues that the fee, implemented by the Department of Homeland Security (DHS) in September 2025 for filings after September 21, is unlawful and places an “unnecessary financial burden” on public entities. California’s Attorney General is leading the charge, asserting that the administration lacked the legal authority for such a steep charge.
This aggressive fee policy is seen as a direct threat to essential public services, particularly in education and healthcare. Hospitals, universities, and school districts often depend on the H-1B visa program to recruit specialized talent. The states involved believe this fee will exacerbate existing staffing shortages, making it harder for these vital institutions to operate effectively and serve their communities.
The legal basis for the lawsuit includes allegations that the fee violates the Administrative Procedure Act and the U.S. Constitution. The states argue that past H-1B fees were intended to cover administrative costs, and this $100,000 charge far exceeds that scope. They also contend that the DHS bypassed proper legislative and rulemaking processes when implementing this significant increase.
The impact of this fee could be profound. The states highlight critical shortages in areas like special education, science teaching, and healthcare professions, where H-1B visas are a significant source of talent. The projected physician shortage further underscores the importance of accessible visa pathways. The lawsuit aims to block this fee, arguing it jeopardizes access to skilled foreign workers essential for the nation’s public services and economic well-being.