20 US States Challenge Trump's $100,000 H-1B Visa Fee: Impact on Healthcare and Education

Washington:

Twenty US states have initiated legal action against the Trump Administration's recent implementation of a $100,000 fee on new H-1B visa petitions. The lawsuit contends that this policy lacks legal foundation and poses significant threats to crucial public services across the nation.

The legal challenge specifically targets a Department of Homeland Security policy that dramatically increases costs for employers seeking to hire specialized foreign workers through the H-1B visa program. This program is extensively utilized by hospitals, universities, and public educational institutions throughout the United States.

California Attorney General Rob Bonta, who is spearheading the legal effort, has asserted that the administration overstepped its authority in imposing this substantial 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 stated. "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."

President Trump mandated this fee through a proclamation issued on September 19, 2025. The Department of Homeland Security subsequently applied this policy to H-1B petitions filed after September 21, granting the Secretary of Homeland Security discretion to determine which applications would be subject to the fee or qualify for exemptions.

The states argue in their lawsuit that the policy violates both the Administrative Procedure Act and the US Constitution by circumventing required rulemaking processes and exceeding congressional authority. They emphasize that fees associated with the H-1B program have historically been limited to covering the administrative costs of the system.

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

Under federal legislation, employers must certify that hiring H-1B workers will not negatively impact the wages or working conditions of American 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 educational institutions, universities, and hospitals, are generally exempt from this cap.

The attorneys general warn that the new fee would exacerbate existing staffing shortages, particularly in education and healthcare sectors.

During the 2024–2025 academic year, 74 percent of US school districts reported difficulties filling vacant positions, especially in specialized fields such as special education, physical sciences, ESL or bilingual education, and foreign languages. Educators represent the third-largest occupational group among H-1B visa holders.

Healthcare providers also depend significantly on this program. Nearly 17,000 H-1B visas were issued for medicine and health occupations in fiscal year 2024, with approximately half allocated to physicians and surgeons. The United States is projected to experience a shortage of 86,000 physicians by 2036.

The lawsuit was filed jointly by Bonta and Massachusetts Attorney General Andrea Joy Campbell, with support from attorneys general representing 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 program serves as a vital pathway for skilled foreign workers, including substantial numbers of Indian professionals employed across technology, healthcare, and academic research sectors.