20 US states sue Trump over $100,000 H-1B visa fee

WASHINGTON: Twenty US states filed a lawsuit challenging the Trump Administration's decision to impose a $100,000 fee on new H-1B visa petitions, arguing the policy is unlawful and threatens essential public services.

The lawsuit targets a policy implemented by the Department of Homeland Security that sharply increases the cost for employers seeking to hire high-skilled foreign workers under the H-1B visa programme, widely used by hospitals, universities and public schools.

California Attorney General Rob Bonta, whose office is leading the case, said the administration lacked authority to impose the fee.

"As the world's fourth largest economy, California knows that when skilled talent from around the world joins our workforce, it drives our state forward," Bonta said.

"President Trump's illegal $100,000 H-1B visa fee creates unnecessary - and illegal - financial burdens on California public employers and other providers of vital services, exacerbating labour shortages in key sectors," he said.

President Trump ordered the fee through a proclamation issued on September 19, 2025. DHS applied the policy to H-1B petitions filed after September 21 and gave the Secretary of Homeland Security discretion to determine which applications are subject to the fee or qualify for exemptions.

The states argue the policy violates the Administrative Procedure Act and the US Constitution by bypassing required rulemaking and exceeding congressional authority. They say fees tied to the H-1B programme have historically been limited to the cost of administering the system.

Employers filing initial H-1B petitions currently pay between $960 and $7,595 in combined regulatory and statutory fees.

Under federal law, employers must certify that hiring H-1B workers will not adversely affect the wages or working conditions of US workers. Congress caps most private-sector H-1B visas at 65,000 annually, with an additional 20,000 reserved for applicants holding advanced degrees.

Government and non-profit employers, including schools, universities and hospitals, are generally exempt from the cap. (IANS)

Also Read: US clarifies $100,000 H-1B visa fee, exempts current holders