Trump’s Move Backfires: 20 US States Approach Court Against H-1B Visa Fee Hike
Washington (Uttam Hindu News): Twenty US states have filed a lawsuit against the Trump administration, challenging the sharp increase in H-1B visa application fees. The states argue that imposing a massive fee of USD 100,000 on new H-1B visa applications is illegal and will seriously affect essential public services. The case targets a policy introduced by the Department of Homeland Security that suddenly placed a very high financial burden on employers hiring skilled foreign workers under the H-1B visa program.
The H-1B visa is widely used by hospitals, universities, and public schools to employ skilled professionals. California Attorney General Rob Bonta is leading the case. According to his office, the administration does not have the legal authority to impose such an excessive fee. Bonta said that as the world’s fourth-largest economy, California understands that attracting skilled talent from across the globe helps the state grow and remain competitive.
Bonta stated that the USD 100,000 H-1B fee imposed by President Trump is not only unnecessary but also unlawful. He warned that this move would increase the financial burden on schools, hospitals, and other essential service providers, further worsening staff shortages in critical sectors.
President Trump announced the new fee through a proclamation issued on September 19, 2025. The fee applies to H-1B applications filed after September 21. The Homeland Security Secretary was given the authority to decide which applications would fall under the new fee or qualify for exemptions.
The states argue that this policy violates administrative law, federal statutes, and the US Constitution, as it was introduced without following proper procedures and exceeds the authority granted by Congress. Until now, H-1B-related fees were limited to covering administrative costs.
Currently, employers pay a combined H-1B fee ranging from about USD 960 to USD 7,595. Federal law also requires employers to certify that hiring foreign workers does not negatively affect the wages or working conditions of US employees. Congress limits most private-sector H-1B visas to 65,000 per year, with an additional 20,000 reserved for applicants with advanced degrees. Government and non-profit institutions such as schools, universities, and hospitals are exempt from this cap.
According to the attorneys general, the new fee will deepen workforce shortages in education and healthcare. The lawsuit was filed by Rob Bonta along with Massachusetts Attorney General Andrea Joy Campbell, and is supported by attorneys general from Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, Nevada, North Carolina, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, and Wisconsin. The H-1B visa program remains a key pathway for skilled foreign professionals, including a large number of Indian experts working in technology, healthcare, and research in the United States.