Trump's $100,000 H-1B Visa Fee Lawsuit: 20 States Challenge Policy

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Written by

Mynaz Altaf

Fact check by

Shreya Pandey

Updated on

Jun 23,2026

Trump's $100,000 H-1B Visa Fee Lawsuit: 20 States Challenge Policy - TerraTern

Key Highlights

What is the H-1B Visa Program?
Why the $100,000 Fee?
States Joining the Lawsuit
Impacts on Key Sectors
Conclusion

Twenty US states launched a lawsuit against Trump's $100,000 H-1B visa fee on December 12, 2025. The fee targets new applications for visas that let companies hire skilled foreign workers. California leads the charge, saying the policy hurts schools, hospitals, and tech firms. California AG Rob Bonta and Massachusetts AG Andrea Joy Campbell head the case. They claim the fee exceeds processing costs and skips required rules. New York AG Letitia James added it disrupts education and the economy.

What is the H-1B Visa Program?

H-1B visas fill speciality jobs needing a bachelor's degree or more, like software engineering or medicine. US employers sponsor them for roles Americans can't fill fast enough. Tech giants such as Amazon, Microsoft, and Meta rely on them heavily.

In fiscal 2024, nearly 400,000 approvals came, mostly renewals. Indians hold about 70% of them, key to California's tech hubs. The program caps at 85,000 new visas yearly, sparking lotteries.

Also Read: US Court Grants Relief to 133 Students After Sudden SEVIS Termination

Why the $100,000 Fee?

Trump announced the fee in September 2025 to stop wage suppression and program abuse of U.S. visa rules. The White House calls it legal under immigration powers. Commerce Secretary Howard Lutnick set the amount after company talks—$100,000 yearly for three years.

Old fees sat at $2,000-$5,000 total. States say this new charge funds the government, a Congress job only. It hits public employers the most, who lack big budgets.

Fee Type	Previous Cost	New Trump Fee	Increase
Base Filling	$460-$780	Included in $100K	200x+
Fraud Prevention	$500	Included	N/A
ACWIA	$750-$1,500	Included	N/A
Public Law	$4,000 (large firms)	$100,000 annual	25x
Total Typical	$2,000-$5,000	$100,000/year	20-50x

States Joining the Lawsuit

The coalition includes mostly Democrat-led states hit by labour gaps.

California
Massachusetts
New York
Illinois
New Jersey
Washington
Colorado
Delaware
Maryland
Michigan
Minnesota
Oregon
Rhode Island
Vermont
Wisconsin
Arizona
Connecticut
Hawaii
North Carolina

Also Read: USCIS Registration Rule: What Non-citizens Need to Know

Impacts on Key Sectors

Hospitals need H-1B nurses and doctors amid shortages. Universities hire researchers; schools get teachers. Tech loses talent, pushing work offshore to India or Mexico.

Indian IT firms like TCS and Infosys face on-site cuts. Clients such as Apple and JPMorgan may delay projects. One chart shows the top users:

Top Industries	H-1B Approvals (Recent)	Avg Salary
Tech/Consulting	50%+	$110K-$150K
Finance	32,849	$148K
Education	31,270	$91K
Health	18,565	$164K

Conclusion

Trump's $100,000 H-1B visa fee now faces a major test from 20 US states in federal court, with the lawsuit filed on December 12, 2025. Public hospitals, schools, and tech firms argue that the fee blocks needed hires during labour shortages, hitting sectors like health and education hardest. A ruling could ease or end the policy soon, reshaping access for skilled workers from India and other nations while employers adapt to rising costs. Check official H-1B visa details and fees on the USCIS website. To know more about the Trump H-1B visa, visit TerraTern now!

Mynaz Altaf

Sr. Content Writer

I am Mynaz Altaf, an accomplished Senior Content Manager with extensive experience in the immigration industry. At TerraTern, I craft transformative content strategies, leading a dynamic team of creatives. By blending analytical precision with creative flair, I create engaging narratives that captivate and convert. Join me in exploring the art of impactful storytelling, where precision meets passion in the realm of content innovation.

At TerraTern, we adhere to a stringent editorial policy emphasizing factual accuracy, impartiality, and relevance. Our content is curated by experienced industry professionals, and reviewed by editors to ensure high standards.

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Frequently Asked Questions

What is Trump's $100,000 H-1B visa fee about?

Trump set this fee in September 2025 for new H-1B applications to limit program use. It adds $100,000 yearly for three years on top of old costs. States say it hurts public hiring in schools and hospitals. Tech firms face higher bills too. The policy started after September 21, 2025.

Why are 20 US states suing over the H-1B fee?

States filed on December 12, 2025, in Boston federal court led by California and Massachusetts. They claim the fee breaks law by raising revenue without Congress and skips rule-making. Public employers can't afford it amid job gaps. AGs like Rob Bonta call it unlawful.

How does the new fee compare to previous H-1B costs?

Old fees totaled $2,000-$5,000 including filing, fraud, and training charges. The new $100,000 is annual and covers everything, a 20-50 times jump. Large firms paid $4,000 max before under public laws. Small public entities get hit worse now.

Which sectors rely most on H-1B visas affected by this?

Tech leads with 50%+ approvals for roles at Amazon and Microsoft, average $110K-$150K pay. Health needs 18,000+ doctors and nurses at $164K average. Education and finance follow with teachers and analysts. Indians hold 70% of visas.

What could happen if states win the H-1B fee lawsuit?

Courts might block the fee, dropping costs back for employers. Public sectors fill shortages faster in nursing and teaching. Tech avoids offshoring to India. This follows earlier suits by businesses in October 2025. Rulings could come soon.