H-1B Visa Fee Challenge by US States Seeks to Block USD 100,000 Charge

A multistate group of US attorneys general is preparing a lawsuit against the Donald Trump administration over a new $100,000 charge on initial H-1B visa applications, arguing that the fee is unlawful, will strain employers’ costs, and could restrict access to highly skilled workers in sectors such as technology, health care, and education, according to Bloomberg.

The legal challenge comes as the administration moves to reshape the H-1B visa programme, a key channel for US companies to employ college-educated foreign professionals in specialised roles. Donald Trump announced a wider set of changes in September, claiming that misuse of H-1B visas has displaced US workers in some industries.

The lawsuit, expected to be filed on Friday, is set to argue that officials introduced the $100,000 H-1B visa fee without following legally required rulemaking procedures. The complaint will say the steep cost acts as an unlawful barrier for businesses that depend on H-1B visa holders to cover specialist roles, particularly where the domestic talent pool is limited.

California Attorney General Rob Bonta and Massachusetts Attorney General Andrea Joy Campbell are leading the H-1B visa fee challenge on behalf of a coalition that includes New York and 17 other states. These states say the measure will damage regional economies and weaken important public services that rely on skilled foreign staff.

Bonta linked the H-1B visa fee to broader economic risks for his state, stating that international workers play a central role in California’s growth. "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 in a statement. "The Trump administration thinks it can raise costs on a whim, but the law says otherwise."

This will be at least the third legal case targeting the H-1B visa fee increase announced by Donald Trump in September, but it is the first filed by US states. The US Chamber of Commerce launched a suit in October, and a global nurse-staffing company joined with several unions in another; both of those cases remain pending in federal court.

The attorneys general say the new H-1B visa fee will weigh most heavily on public institutions such as hospitals, clinics, and schools. They argue that these organisations depend on foreign doctors, nurses, teachers, and researchers to plug staffing gaps, and that the rise in costs could reduce recruitment and disrupt the delivery of essential services.

New York Attorney General Letitia James warned that the revised H-1B visa fee rules would hit basic services and local growth, saying, "The administration's illegal attempt to ruin this program will make it harder for New Yorkers to get health care, disrupt our children's education, and hurt our economy," according to Bloomberg. The coalition also includes Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, North Carolina, New Jersey, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.

H-1B visa fee, lottery system, and major employers

H-1B visas are allocated through an annual lottery, and technology firms make heavy use of the programme. Data cited by Bloomberg show that large users of H-1B visa workers include Amazon, Tata Consultancy Services Ltd., Microsoft, Meta Platforms Inc., and Apple Inc., which collectively recruit thousands of foreign specialists each year to support operations across the US.

Organisation	Role in H-1B visa use
Amazon	Major employer of H-1B technology professionals
Tata Consultancy Services Ltd.	Large IT services firm using H-1B staff
Microsoft	Relies on H-1B workers for specialised roles
Meta Platforms Inc.	Uses H-1B visas for engineering talent
Apple Inc.	Employs H-1B workers in technical positions

The outcome of the multistate H-1B visa fee challenge will be closely watched by employers, universities, and public agencies across the US. Any court ruling that blocks or upholds the $100,000 charge could shape hiring strategies, budgets, and access to international talent, with possible knock-on effects for service delivery and innovation relevant to global investors and Indian professionals.