A coalition of 20 U.S. states has mounted a legal challenge against the Trump administration’s controversial $100,000 fee for new H-1B visa applications. The states contend that the Department of Homeland Security (DHS) imposed the fee, effective September 2025 for petitions filed after September 21, without proper legal authority and that it creates an “unnecessary financial burden.” California is spearheading this legal action, with its Attorney General asserting that the administration’s move is unlawful.
The primary concern is the detrimental effect this fee will have on public employers and vital sectors like education and healthcare. Institutions such as hospitals, universities, and school districts, which rely on the H-1B program to attract skilled foreign professionals, are facing significant financial hurdles. The states argue that this policy will worsen critical staffing shortages in these essential fields.
The lawsuit is grounded in the assertion that the $100,000 fee violates the Administrative Procedure Act and the U.S. Constitution. Historically, H-1B fees have been capped to cover administrative expenses. The states argue that this fee dramatically exceeds congressional authorization and circumvents established administrative rulemaking procedures. The H-1B program itself is a vital mechanism for U.S. employers to hire highly skilled foreign workers.
The potential consequences of this fee are dire, according to the filing states. They point to existing difficulties in filling teaching positions and the projected shortage of physicians. The high cost of obtaining H-1B visas through this new fee risks limiting access to crucial talent, thereby impacting the quality and availability of public services and hindering economic growth. The states are seeking to overturn this costly policy.