A group of 20 US states, led by California, has filed a lawsuit against the Trump administration over a steep new $100,000 fee on H-1B visas, arguing that the move is unlawful and will severely disrupt essential public services such as healthcare and education.
Announcing the legal action, California Attorney General Rob Bonta said the policy places “illegal financial burdens” on employers and risks worsening critical labour shortages. The challenge targets a Department of Homeland Security (DHS) policy introduced after a presidential proclamation issued in September.
Under the new rule, the $100,000 charge applies to all H-1B visa petitions filed after September 21. The fee marks an unprecedented jump from existing H-1B costs, which generally range from less than $1,000 to about $7,500.
The coalition of attorneys general argues that the administration has exceeded its statutory authority by imposing a fee far beyond what Congress has authorised. The lawsuit claims the policy violates the Administrative Procedure Act (APA) by bypassing required notice-and-comment rulemaking and by setting a charge that bears no relation to the actual cost of processing visa applications. The affected workforce includes doctors, nurses, teachers, researchers and engineers.
“California knows that when skilled talent from around the world joins our workforce, it drives our state forward,” Bonta said. He warned that the fee would particularly harm public employers and deepen existing staffing gaps.
States joining the lawsuit include New York, Illinois, Washington and Massachusetts. The coalition is seeking to block the policy and have it declared unconstitutional.
Schools, hospitals and public services at risk
The states argue that public sector and non-profit employers will be hit hardest by the new fee, especially schools, universities and hospitals. Many of these institutions are exempt from the annual H-1B cap of 65,000 visas but, the lawsuit says, cannot absorb an additional $100,000 per hire without cutting services or redirecting funds from other programmes.
The filing underscores the scale of existing shortages. During the 2024–25 school year, nearly three-quarters of US school districts reported difficulty filling teaching positions, particularly in special education, science and bilingual instruction. Educators form one of the largest groups of H-1B workers nationwide.
Healthcare faces similar pressure. In the 2024 fiscal year, almost 17,000 H-1B visas were issued for medical and health occupations, including physicians and surgeons. The US is projected to face a shortage of up to 86,000 doctors by 2036, with rural and low-income communities — including parts of California — already feeling the strain.
Tighter controls and deeper scrutiny
The lawsuit comes amid a broader tightening of the H-1B programme under the Trump administration. Measures include higher fees, stricter compliance checks and expanded vetting. A separate proposal would require up to five years of social media history from all visitors to the US, including those from visa-waiver countries such as the UK, Japan and Australia. While not yet final, the plan signals a push toward far more intensive screening of foreign nationals.
For H-1B applicants, social media vetting is already mandatory from December 15, alongside enhanced enforcement measures.
These changes are compounded by structural constraints. The H-1B cap remains fixed at 85,000 visas despite rising demand, while Indian nationals account for more than 70 per cent of approvals. Even successful applicants often face green card backlogs stretching decades because of per-country limits.
White House defends policy
The Trump administration has defended the fee as part of a wider effort to reform the H-1B system and prioritise American workers. A White House spokesperson said the measure would curb abuse of the programme and protect domestic wages, maintaining that the action is lawful.
Critics, however, warn that the policy could undermine the US economy and damage international ties. Lawmakers have noted that the fee would disproportionately affect Indian professionals, who hold an estimated 70 per cent of H-1B visas, potentially straining US-India relations and pushing skilled workers towards countries with more welcoming immigration regimes.
