- By Supratik Das
- Sat, 13 Dec 2025 12:52 PM (IST)
- Source:JND
A coalition of US states, led by California and Massachusetts, has sued the Trump administration over its plan to impose a steep USD 100,000 fee on new H-1B visa applications, asserting that the move is unlawful and threatens public services such as healthcare, education, and research.
The lawsuit, filed in a federal court in Massachusetts, targets a policy implemented by the Department of Homeland Security (DHS) following a presidential proclamation issued on September 19, 2025. The new fee applies to H-1B petitions filed after September 21 and represents an unprecedented increase from the existing charges, which typically range from USD 960 to USD 7,595.
States Say Fee Exceeds Legal Authority
In the complaint, the states argue that the fee violates the Administrative Procedure Act (APA) by bypassing the mandatory notice-and-comment rulemaking process and by setting a charge unrelated to the actual cost of administering the H-1B programme. They also allege that the policy runs contrary to congressional intent, which limits visa fees to amounts necessary to sustain agency operations.
“No president can destabilise our schools, hospitals and universities on a whim,” Bonta said, warning that the measure could worsen staffing shortages in sectors already under strain.
Impact On Schools, Hospitals And Public Services
The H-1B visa programme allows US employers to hire foreign workers in “specialty occupations” requiring at least a bachelor’s degree. Public schools, universities, hospitals and non-profit research institutions rely heavily on the programme and are generally exempt from the annual cap of 65,000 visas.
The states argue that these employers cannot absorb an additional USD 100,000 per-hire cost without cutting services or diverting public funds. This school year, nearly 74 percent of US school districts have reported difficulties filling open positions, most seriously in special education, science, and bilingual education. Educators are among the most numerous occupational groups using H-1B visas.
Healthcare providers face similar challenges. In the fiscal year 2024, close to 17,000 H-1B visas were issued for medical and health occupations, about half to physicians and surgeons. The US is projected to face a shortage of up to 86,000 doctors by 2036.
The lawsuit marks at least the third legal challenge to the Trump administration’s H-1B policy changes. Earlier, the US Chamber of Commerce and a coalition of unions, employers, and religious groups had also moved the court against the fee hike. The coalition of states, which includes New York, Illinois, Washington, New Jersey, and Oregon, is seeking to block the policy and have it declared unconstitutional, setting the stage for a major legal battle over the future of the H-1B programme.