Twenty US states have moved to legally challenge President Donald Trump’s decision to impose a $100,000 fee on new H-1B visa petitions, calling the measure unlawful and unconstitutional. The fee was announced through a presidential proclamation issued on September 19, 2025, directing the Department of Homeland Security to levy the surcharge on H-1B petitions filed after September 21. Under the order, new H-1B recipients may be barred from entering the United States unless their sponsoring employer pays the six-figure amount. Existing H-1B holders and applications submitted before the cut-off date are not affected.
Why Are US States Suing the Trump Administration?
The Trump administration has exceeded the authority granted by Congress, the lawsuit led by California Attorney General Rob Bonta and Massachusetts Attorney General Andrea Joy Campbell says. Federal immigration law permits fees for a visa only to the extent of covering administrative programme operating costs, the states argue.
An initial petition for an H-1B currently comes with $960-$7,595 in combined statutory and regulatory fees paid by employers. A $100,000 charge has no relationship to and is thus unconnected with processing costs, according to the states, and is, instead, an unlawful revenue-raising measure by the executive branch.
What are the alleged legal violations?
The states say the policy runs afoul of the Administrative Procedure Act by sidestepping required notice-and-comment rulemaking and infringes the US Constitution by usurping Congress’s sole prerogative to determine immigration policy and assess fees.
Attorney General Bonta has commented that no president can unilaterally rewrite immigration law or impose financial burdens designed to dismantle a programme that Congress has time and again refined and regulated.
How Might the Fee Affect US Schools and Hospitals?
A central argument in the lawsuit is that the fee will exacerbate staffing shortages in essential public services. US school districts are already finding it difficult to fill vacancies, with almost three-quarters reporting hiring difficulties during the 2024-2025 school year.
The hardest-to-staff positions include special education, physical sciences, ESL, and foreign language instruction. Educators represent the third-largest occupation of H-1B visa holders, placing public education among those at most risk from the policy.
Healthcare workers also rely greatly on the H-1B programme. Nearly 17,000 visas were issued for medical and health occupations in fiscal year 2024, with about half granted to physicians and surgeons.
The United States is supposed to face a shortage of 86,000 doctors by 2036, and the states contend that imposing a six-figure fee may deepen healthcare gaps and further constrain patient access, particularly in underserved areas.
What Does the Lawsuit Mean for Indian Professionals?
The case has drawn close attention in India, as Indian nationals form the largest share of H-1B visa holders. Indian professionals dominate sectors such as information technology, health care, engineering and academic research.
A $100,000 fee would likely discourage employers from sponsoring new applicants, especially recent graduates of U.S. universities and public sector recruits. For Indian professionals, this could mean fewer job offers, delayed career progression and greater uncertainty about long-term opportunities in the United States.
Why is the debate over H-1B turning political?
The lawsuit has played out against the backdrop of increasing political rhetoric over skilled immigration. The Trump administration has maintained the policy is needed to help prevent abuses of the H-1B system and to safeguard American workers.
Critics of the programme say it allows companies to supplant domestic workers with cheaper foreigner workers. Business groups and state governments refute this, saying the programme fills pressing skill gaps and fuels economic growth.
The debate has turned even hotter in recent days after a US pollster, Mark Mitchell, made comments that earned him a barrage of criticism. He called on American firms to “de-Indianise” their workforce.
Many critics labelled his comments as racist. His remarks have inflamed concerns about growing hostility toward Indian professionals at a time when immigration policy is already under legal and political strain.
Are There Other Legal Challenges to the Fee?
The states’ lawsuit is part of a wider tide of legal resistance. The US Chamber of Commerce and a coalition of unions, employers, and religious groups have filed separate challenges, arguing the fee has no tie to administrative costs and unlawfully limits legal immigration. A federal judge in Washington, DC is scheduled to hear arguments in one such case.
Why This Case Matters for India and Global Talent
The case could dramatically change the outlook for high-skilled immigration to the United States. For Indian professionals and students, it might spell out whether the H-1B visa continues to be an option or turns into one that most will find unaffordable. More broadly, the litigation puts a check on the extent of executive authority over immigration policy and highlights Congress’s leading role in setting policies that bar access to or open doors to talent flows worldwide.
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Sofia Babu Chacko is a journalist with over five years of experience covering Indian politics, crime, human rights, gender issues, and stories about marginalized communities. She believes that every voice matters, and journalism has a vital role to play in amplifying those voices. Sofia is committed to creating impact and shedding light on stories that truly matter. Beyond her work in the newsroom, she is also a music enthusiast who enjoys singing.
