Twenty United States states have launched a legal challenge against the Trump administration’s controversial $100,000 fee for new H-1B visa petitions. Led by California Attorney General Rob Bonta, the coalition argues that this exorbitant fee is unlawful and imposes an “unnecessary financial burden” on public employers and essential service providers. The states contend that the Department of Homeland Security (DHS), which implemented the fee in September 2025 for petitions filed after September 21, exceeded its statutory authority.
This new policy directly impacts critical sectors such as education and healthcare, which frequently rely on skilled foreign workers to fill crucial staffing needs. Public institutions like hospitals, universities, and school districts are particularly vulnerable, potentially exacerbating existing labor shortages. Attorney General Bonta stated that the administration lacked the legal authority to impose such a substantial fee, which he believes worsens the ability of public entities to secure necessary talent.
The lawsuit asserts that the $100,000 fee violates the Administrative Procedure Act and the U.S. Constitution, claiming it surpasses the costs typically associated with H-1B visa processing. Historically, H-1B fees have been confined to administrative expenses. The states are arguing that this fee bypasses established rulemaking procedures and goes beyond the authority granted by Congress, especially considering the H-1B program’s role in bringing skilled professionals, including many from India, into sectors vital for innovation and public welfare.
The states involved warn that the fee will have detrimental effects on public services. For instance, a significant percentage of U.S. school districts have already reported difficulties in hiring teachers for specialized roles. Similarly, the healthcare industry faces projected shortages of physicians. By making it prohibitively expensive to hire foreign-born professionals, the fee risks undermining the capacity of these essential services to meet societal demands and economic growth.