WASHINGTON: Twenty US states have filed a lawsuit against the Trump administration, alleging that the steep $100,000 fee imposed on new H-1B visa applications is illegal and will negatively impact essential public services.
The lawsuit targets a policy implemented by the Department of Homeland Security that suddenly imposed exorbitant fees on employers to hire foreign skilled workers under the H-1B visa, which is widely used in hospitals, universities and public schools.
California Attorney General Rob Bonta is leading the case. His office said the administration had no authority to impose such high fees. Bonta said that as the world’s fourth-largest economy, California knows that when skilled people from around the world come to work, the state thrives.
Bonta said that the $100,000 H-1B fee imposed by President Trump is not only unnecessary but also illegal. It will increase the financial burden on schools, hospitals and other essential service providers and exacerbate workforce shortages.
President Trump mandated the fee through a proclamation issued on September 19, 2025. It applies to H-1B applications filed after September 21. It gives the Homeland Security Secretary the authority to determine which applications are subject to the fee or qualify for a waiver. The states argue that the policy violates administrative procedure, the law and the U.S. Constitution because the rules were implemented without due process and the decision was made outside the purview of Congress.
Until now, H-1B fees were limited to operating costs. Currently, employers pay a variety of fees for H-1B visas, ranging from about $960 to $7,595. Federal law also requires them to provide evidence that hiring foreign workers will not adversely affect the wages or working conditions of American workers.
Congress caps the number of H-1B visas for most private sectors at 65,000 annually, with an additional 20,000 visas for people with advanced degrees. Government and nonprofit organizations such as schools, universities, and hospitals are exempt from this limit.