Coalition of 20 States Sues Trump Administration Over $100,000 H-1B Visa Fee

States Challenge H-1B Visa Fee in Federal Court

A coalition comprising California and 19 other U.S. states filed a lawsuit on Friday, December 12, 2025, seeking to block the Trump administration's newly imposed $100,000 fee on H-1B visas for skilled foreign workers. The legal action, filed in federal court in Boston, Massachusetts, contends that the significant fee increase is unlawful and will have detrimental effects on essential services and industries across the nation.

The Contested H-1B Visa Fee

President Donald Trump issued a proclamation on September 19, 2025, which became effective on September 21, 2025, mandating a $100,000 application fee for most new H-1B visa petitions. This new charge represents a substantial increase from previous H-1B fees, which typically ranged between $960 and $7,595, depending on various factors. The Trump administration has defended the fee as a measure to 'protect American workers' and prevent the H-1B program from being 'exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor.' White House spokeswoman Taylor Rogers stated that the action aims to 'discourage companies from spamming the system and driving down American wages, while providing certainty to employers who need to bring the best talent from overseas.'

Legal Arguments Against the Fee

The coalition of states, led by California Attorney General Rob Bonta and Massachusetts Attorney General Andrea Joy Campbell, argues that the $100,000 fee is illegal on several grounds. Their lawsuit asserts that the fee:

• Violates existing immigration law, which permits fees only to cover administrative processing costs, not to generate revenue.
• Unconstitutionally usurps Congress's power to raise revenue.
• Exceeds the President's executive authority and attempts to 're-write immigration law.'
• Bypasses the legally required rulemaking processes, such as the Administrative Procedure Act (APA), by imposing the fee without proper justification or public input.

The states involved in the lawsuit include Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, North Carolina, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, and Wisconsin, alongside California.

Potential Impact on Critical Sectors

Attorneys General from the plaintiff states warn that the exorbitant fee will create 'unnecessary — and illegal — financial burdens' and 'exacerbate labor shortages' in vital sectors. Industries such as healthcare, education, and technology, which rely heavily on H-1B visa holders to fill specialized roles, are expected to be significantly impacted. New York Attorney General Letitia James stated that the measure would 'make it harder for New Yorkers to get health care, disrupt our children's education, and hurt our economy.' This lawsuit is not the first challenge to the fee; it follows earlier legal actions filed by the U.S. Chamber of Commerce and a coalition of unions, employers, and religious groups.