20 States Sue Trump Over $100,000 H-1B Visa Fee Hike, Citing Critical Staffing Shortages

Twenty U.S. states are filing a federal lawsuit against the Trump administration. They are challenging a massive new fee for H-1B visa applications. The lawsuit was announced on Friday, led by the attorneys general of California and Massachusetts.They argue the policy is illegal and will harm public services. According to Reuters, the legal challenge will be filed in a Massachusetts federal court. This marks a major escalation in the battle over skilled immigration rules.

Legal Challenge Targets “Costly Barrier” for Employers

The contested rule imposes a $100,000 fee on new H-1B petitions. This fee is targeted at employers who rely heavily on the visa program. The H-1B program allows U.S. companies to hire foreign workers in specialty occupations.California Attorney General Rob Bonta stated the fee could cause severe staffing shortages. He specifically mentioned teachers, physicians, and researchers. The policy creates a costly barrier for employers trying to fill vital positions.The states allege the fee violates federal law. They argue it bypasses Congress and exceeds executive authority. The fee far surpasses the actual cost of processing visa applications.Typically, employers pay between $960 and $7,595 for an H-1B petition. The new $100,000 fee is exponentially higher. This could deter public sector and non-profit entities from using the program at all.

Widespread Impact on Healthcare, Education, and Research

The lawsuit warns of broad consequences for state operations. Hospitals, universities, and research centers often depend on H-1B talent. A sudden drop in applicants could disrupt critical services nationwide.The coalition of states includes Illinois, New York, and New Jersey. They claim the administration ignored required legal procedures. The rule was issued without proper analysis of its impacts on government services.The legal argument centers on the Administrative Procedure Act. States say the fee hike skipped the mandatory notice-and-comment period. This process allows for public feedback before a rule is finalized.

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This high-stakes legal fight will determine access to global talent for key American sectors. The outcome of the H-1B fee hike lawsuit could reshape immigration policy for skilled professionals for years to come.

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What is the H-1B visa program?

The H-1B is a U.S. visa for foreign workers in specialty occupations. It requires a bachelor’s degree or equivalent in a specific field. Employers use it to hire talent in fields like technology, medicine, and engineering.

Why are states suing over the H-1B fee?

States argue the $100,000 fee is unlawful and was enacted improperly. They say it will cripple their ability to hire essential workers. The fee could lead to shortages in healthcare, education, and scientific research.

Which states are part of the lawsuit?

Twenty states are involved, led by California and Massachusetts. The list includes New York, Illinois, Washington, and Colorado. A full list is provided in the article above.

How much was the H-1B fee before this hike?

Standard government filing fees ranged from about $960 to $7,595. The new $100,000 fee applies to employers with a high proportion of H-1B workers. It represents a more than tenfold increase for many companies.

What happens next in this legal case?

The lawsuit will proceed in federal court in Massachusetts. A judge will review the states’ arguments against the administration’s rule. The process could take months, potentially leading to an injunction that pauses the fee.