Trump’s $100,000 Visa Move: 20 US States Sue Administration Over H-1B Fee Hike, Cite Illegal Burden on Employers

The Trump administration faces legal opposition from a coalition of 20 American states, with California at the forefront, which challenges the imposition of a $100,000 fee on H-1B visas as unnecessarily steep and, therefore, illegal.

California Attorney General Rob Bonta revealed the lawsuit along with a policy that came from the DHS's issuing of a presidential proclamation in September. Starting from the new rule, all H-1B visa applications made after September 21 will be liable for the whopping $100,000 fee—an unheard-of rise from the previous fee range of below $1,000 to around $7,500.

In support of their case, the state attorneys argue that the government has indeed acted beyond its jurisdiction when it set a $100,000 visa fee which is considerably higher than what has been approved by Congress. They claim that the action violates the Administrative Procedure Act for not holding a public hearing, which is a requirement, and for imposing a fee that bears no relationship to the actual costs involved in processing the visa applications.

In making the statement, Bonta indicated that the decision is outright against the aim of the H-1B programme which is meant to help US employers get access to global talent in fields where the minimum education requirement is a bachelor's degree. Such roles may include the likes of doctors, nurses, teachers, researchers, and engineers. He warned that the policy would place an “illegal financial burden” on public employers and worsen existing labour shortages.

The coalition of states—which includes New York, Illinois, Washington and Massachusetts—is seeking to block the policy and have it declared unconstitutional.

Impact on Public Services

According to the states, the fee increase will disproportionately affect public sector and non-profit employers, particularly schools, universities and hospitals. Many of these institutions are exempt from the annual H-1B cap of 65,000 visas and rely heavily on foreign professionals. They argue that absorbing an additional $100,000 per hire would force them to cut services or divert funds from other critical programmes.

The lawsuit highlights ongoing staffing challenges. During the 2024–25 school year, nearly three-quarters of US school districts reported difficulties filling teaching positions, especially in special education, science and bilingual instruction. Educators are among the largest occupational groups using H-1B visas nationwide.

Healthcare shortages are also a key concern. In the 2024 fiscal year, nearly 17,000 H-1B visas were issued for medical and health-related occupations. The US is projected to face a shortage of up to 86,000 doctors by 2036, with rural and low-income areas already feeling the strain.

Broader Immigration Crackdown

The fee hike comes amid a broader tightening of the H-1B programme under the Trump administration, marked by tougher scrutiny, higher costs and expanded data collection. Proposed measures include requiring five years of social media history from all visitors to the US, including those from visa-waiver countries. For H-1B applicants, social media vetting has already become mandatory from December 15, along with stricter compliance checks.

These difficulties are made worse by the persistent structural problems. The H-1B limit has been kept still at 85,000 visas, although demand is rising, and Indian applicants are responsible for over 70 percent of the total approvals. Even the ones who get through the process unimpeded often have to wait for many years before their green card is finally issued because of the restrictions based on countries of origin.

Administration’s Stand

The White House stood by the increase in fees, labeling it a reform step that would protect American workers and assure H-1B program's proper use. Officials insisted that the policy is legal and it is the only way to protect the local wages.

On the other hand, the detractors asserted that the action might adversely impact the economy of the US and cause diplomatic problems. Politicians have warned that the measure hits Indian workers the hardest and may drive the global talent to places with better immigration policies thus reducing the US's ability to compete with others.