20 States File Lawsuit Against $100K H-1B Fee

A coalition of 20 U.S. states has filed a lawsuit challenging the Trump administration’s proposed $100,000 fee for H-1B visa petitions, calling the measure unlawful, unconstitutional, and harmful to critical sectors of the U.S. economy.

The lawsuit, led by California Attorney General Rob Bonta, argues that the unprecedented fee violates both the U.S. Constitution and the Administrative Procedure Act (APA) by exceeding the authority granted to the executive branch and bypassing required rulemaking procedures. According to the states, the fee contradicts Congress’s intent in creating the H-1B program which is designed to help U.S. employers meet labor needs while protecting American workers.

Attorney General Bonta emphasized that California, the world’s fourth-largest economy, depends heavily on skilled foreign professionals to sustain essential services. He warned that the proposed fee would place an illegal and excessive financial burden on public employers and service providers, worsening labor shortages in fields such as education and healthcare.

In addition to California, the lawsuit includes the attorneys general of Massachusetts, Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, Nevada, North Carolina, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.

Impact on Education and Healthcare
The states argue that the fee would disproportionately harm non-tech sectors that rely heavily on H-1B workers. Nearly 30,000 educators and approximately 17,000 healthcare professionals were granted H-1B visas in the most recent fiscal year. Many of these professionals work in underserved communities.

According to the lawsuit, the United States is already facing a projected shortage of 86,000 physicians by 2036, and restricting access to foreign-trained doctors would further strain an already overwhelmed healthcare system.

Legal Challenges Continue
This lawsuit follows earlier legal challenges filed by labor unions, healthcare providers, schools, religious organizations, and the U.S. Chamber of Commerce, all arguing that the administration lacks authority to impose such a fee. Federal law limits visa fees to amounts necessary to recover processing costs, which typically range from under $1,000 to approximately $7,600 for an H-1B petition.

Critics argue that the proposed $100,000 fee bears no relation to USCIS processing costs and functions as an unlawful barrier to legal immigration rather than a legitimate administrative charge.

The Department of Justice has defended the measure, asserting that the president has broad authority under the Immigration and Nationality Act to restrict entry into the United States. However, the states contend that this authority does not extend to imposing massive fees outside congressional approval.

What Comes Next
If implemented, the fee would take effect with the next H-1B lottery cycle in March, potentially reshaping access to high-skilled foreign labor nationwide. The outcome of this lawsuit could have far-reaching implications for U.S. employers, foreign professionals, and the future of employment-based immigration.