19 US states Sue Trump over USD 100,000 H-1B visa fee

Nineteen US states have filed a lawsuit against the Trump administration over its decision to impose a USD 100,000 fee on new H-1B visa applications , calling the move unlawful and warning it could worsen labour shortages in critical sectors such as health care, education, and technology .

The lawsuit, filed in the US District Court for the District of Massachusetts, was led by New York Attorney General Letitia James and joined by 18 other state attorneys general, including those from California, Illinois, and Massachusetts. The states argued that the administration lacks legal authority to impose the fee without Congressional approval or following the required rule-making process , violating the Administrative Procedure Act and the Immigration and Nationality Act .

The H-1B visa programme , widely used by Indian nationals, allows highly skilled foreign professionals to work temporarily in the US. States said the new fee would make it prohibitively expensive for government and non-profit employers that rely on H-1B workers to provide essential services.

“H-1B visas allow doctors, nurses, teachers, and other professionals to serve communities in need. The administration’s illegal attempt to undermine this programme will make it harder for New Yorkers to access health care, disrupt education, and hurt our economy,” James said.

The states highlighted that hospitals, universities, and public institutions already face staffing shortages. In New York, more than a third of health care workers are immigrants, and the State University of New York (SUNY) employs 693 staff on H-1B visas . The American Medical Association estimates a nationwide physician shortage of 86,000 by 2036 , which H-1B workers help address. Colleges, medical schools, and research institutions also rely heavily on H-1B professionals.

Impact on Indian Professionals:

The proposed fee could limit opportunities for Indian IT specialists, doctors, nurses, and academics seeking work in the US. IT professionals may face hurdles in joining American tech companies, affecting projects, innovation, and global collaboration. Indian healthcare workers, who play a key role in staffing rural and underserved areas, could see employment prospects reduced, worsening physician and nursing shortages. Similarly, Indian educators and researchers in US universities may be affected, potentially disrupting teaching, research, and innovation.

California Attorney General Rob Bonta said the fee imposes “illegal and unnecessary financial burdens” on public employers, worsening labour shortages in vital sectors.

Legal experts note that courts could block the fee temporarily if they find it violates the law, though the administration may argue it has broad authority over immigration policy. A final decision could take months and may reach higher courts.

The current H-1B programme, created in the 1990s, allows US employers to hire foreign workers in specialised occupations for up to six years. States argue that the fee would restrict access to the programme, disrupt essential services, harm local economies, and limit opportunities for skilled Indian professionals who contribute significantly to the US workforce.