20 US states sue to block Trump’s $100,000 H-1B visa fee: 'Illegal and harmful to vital services'

Trump sued by 20 states over record $100,000 H-1B visa surcharge

Twenty US states, led by California Attorney General Rob Bonta, have filed a lawsuit challenging President Donald Trump’s September order imposing a $100,000 fee on new H-1B visas, calling the policy “illegal” and harmful to essential public services.

The lawsuit argues the administration exceeded its authority under federal law, violated the Administrative Procedure Act, and bypassed Congress, which has historically capped H-1B fees to cover administrative costs. The fee applies only to new H-1B petitions filed after September 21, 2025.

The H-1B programme allows US employers to hire foreign professionals in specialised fields, including technology, healthcare, and education. Bonta highlighted that tens of thousands of educators and healthcare workers rely on the visas, warning that the fee would exacerbate labour shortages in critical sectors.

“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 said. “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.”

The states joining California in the lawsuit include New York, Massachusetts, Illinois, New Jersey, Washington, Arizona, Colorado, Connecticut, Delaware, Hawaii, Maryland, Michigan, Minnesota, Nevada, North Carolina, Oregon, Rhode Island, Vermont, and Wisconsin. Massachusetts Attorney General Andrea Joy Campbell is co-leading the case.

Employers currently pay between $960 and $7,595 in H-1B fees. Critics argue that Trump’s order, issued via a presidential proclamation, far exceeds these amounts and threatens to destabilise key sectors that rely on foreign talent, while supporters defend the policy as necessary to curb abuse of the programme.

The legal challenge adds to mounting opposition, which includes lawsuits from the US Chamber of Commerce, unions, and employer groups, all questioning the administration’s authority to impose such steep surcharges unilaterally.