Post by : Rameen Ariff

Twenty US states have filed a lawsuit against the Trump administration over its decision to impose a $100,000 fee on new H-1B visa applications, calling the move unlawful and harmful to essential public services. The legal challenge argues that the sharp increase in H-1B visa fees will worsen labour shortages and place an unfair financial burden on public employers across the United States.

The lawsuit challenges a policy introduced by the Department of Homeland Security that dramatically raises the cost for employers hiring high-skilled foreign workers through the H-1B visa programme. This visa programme is widely used by hospitals, universities, research institutions and public schools to fill specialised roles that are difficult to staff with domestic workers alone.

California Attorney General Rob Bonta, whose office is leading the case, said the Trump administration does not have the legal authority to impose such a fee. He stressed that skilled professionals from around the world play a vital role in strengthening the US economy, particularly in states like California.

Bonta said the $100,000 H-1B visa fee creates illegal and unnecessary financial pressure on public institutions, including schools and healthcare providers. He warned that the policy would deepen existing staff shortages in critical sectors such as education, medicine and scientific research.

The fee was ordered by President Trump through a proclamation issued on September 19, 2025. The policy applies to H-1B petitions filed after September 21, giving the Secretary of Homeland Security wide discretion to decide which applications are subject to the fee and which may qualify for exemptions.

The states argue that the policy violates both the US Constitution and the Administrative Procedure Act. According to the lawsuit, the administration bypassed the required rulemaking process and exceeded the authority granted by Congress. The attorneys general pointed out that H-1B visa fees have traditionally been limited to covering the cost of administering the programme.

At present, employers filing initial H-1B petitions pay between $960 and $7,595 in combined statutory and regulatory fees. The sudden jump to $100,000 represents a dramatic change that states say was introduced without legal justification.

Under federal law, employers must certify that hiring H-1B workers will not negatively affect the wages or working conditions of American workers. Congress also limits most private-sector H-1B visas to 65,000 per year, with an additional 20,000 reserved for applicants holding advanced degrees. Government and non-profit employers, including hospitals and educational institutions, are generally exempt from these caps.

The lawsuit highlights serious staffing challenges already facing the country. During the 2024–2025 school year, nearly three-quarters of US school districts reported difficulty filling open positions, particularly in special education, science subjects, bilingual education and foreign languages. Educators make up one of the largest groups of H-1B visa holders.

Healthcare providers are also heavily dependent on the H-1B visa programme. In the 2024 fiscal year, almost 17,000 H-1B visas were issued for medical and health-related occupations, with about half going to physicians and surgeons. The United States is projected to face a shortage of up to 86,000 doctors by 2036, raising concerns that the new fee could further strain the healthcare system.

The lawsuit was filed by the attorneys general of California and Massachusetts and joined by officials from 18 other states, including New York, Illinois, Washington, New Jersey and Michigan. Together, they argue that the H-1B visa programme is a critical pathway for skilled foreign professionals, including a large number of Indian workers employed in technology, healthcare and academic research.

The case adds to growing legal challenges surrounding immigration policy and underscores the broader debate over how the United States balances border enforcement with its need for skilled global talent.

#Global News