A coalition of 20 states has filed a federal lawsuit challenging the Trump Administration’s decision to impose a $100,000 fee on new H-1B visa petitions, calling the policy unlawful and harmful to key sectors of the U.S. economy. Oregon Department of Justice+1

Background on the H-1B Fee Increase

In September 2025, President Trump issued a proclamation directing the Department of Homeland Security (DHS) to implement a $100,000 surcharge on each new H-1B visa petition filed after September 21, 2025. This represents a dramatic increase over the usual H-1B fees (typically between approximately $960 and $7,595) that employers pay to hire highly skilled foreign workers in STEM, healthcare, education, research, and other specialized fields. Oregon Department of Justice+1

Who’s Suing and Where the Case Is Filed

• Lead Plaintiffs: California Attorney General Rob Bonta and Massachusetts Attorney General Andrea Campbell are leading the coalition.
• Participating States: The lawsuit includes attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.
• Court: The case was filed in the U.S. District Court for the District of Massachusetts. California DOJ Attorney General

Legal Claims and Arguments

The coalition argues that the fee is unlawful for several reasons:

• Exceeds Congressional Authority: The H-1B program and related fee structures are governed by federal law; states contend that the executive branch cannot unilaterally impose a six-figure surcharge without explicit authorization from Congress. Reuters
• Violates Federal Administrative Law: The lawsuit asserts that DHS and the Trump Administration failed to follow required rulemaking processes under the Administrative Procedure Act (APA) — including notice and comment periods — before implementing the fee. California DOJ Attorney General
• Improper Fee Setting: States say the $100,000 amount bears no rational connection to the cost of administering the visa program, violating statutory limits that allow fees only to cover regulatory costs. Reuters

Impact on Workers, Employers, and Critical Services

According to the plaintiffs:

• Public Institutions and Nonprofits — including universities, community colleges, research institutions, schools, and hospitals — will be unable to absorb such high costs for recruiting skilled foreign workers. Oregon Department of Justice+1
• Healthcare and Education Staffing — sectors already experiencing shortages of physicians, nurses, and teachers could see exacerbated workforce gaps. Business Insider
• Tech and Innovation Sectors — industries that rely heavily on global talent (e.g., Silicon Valley tech companies) may face hiring disruptions that could harm competitiveness. Business Insider

State attorneys general emphasize that H-1B visas are intended to help employers supplement — not replace — the domestic workforce and that Congress retained authority to regulate fees and the overall program structure. Reuters