20 Democratic-Led States Sue Trump Over $100,000 H-1B Visa Fee in Major Federal Challenge
A major legal battle erupted Friday as 20 Democratic-led states filed a federal lawsuit against the Trump administration over a controversial new $100,000 fee on H-1B visa applications, escalating conflict over immigration and labor policy just weeks before year’s end.
The lawsuit confirms rising tension between state governments and the federal executive branch over sweeping changes to the H-1B visa program, a cornerstone of U.S. hiring for skilled foreign workers and puts the administration on the defensive over its legal authority to impose the steep surcharge.
According to state filings, California Attorney General Rob Bonta and a coalition of Democratic attorneys general sued the Trump administration in the U.S. District Court for the District of Massachusetts, arguing the fee far exceeds the legal authority granted by Congress and was implemented without proper notice and public input.
The complaint says the $100,000 fee, first announced in September, dwarfs the typical cost of H-1B petitions — normally several thousand dollars — and threatens to make it cost-prohibitive for employers, especially public entities and non-profits, to hire skilled workers. States contend this will worsen shortages in sectors like healthcare, education, research and technology.
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The coalition argues the policy violates the Administrative Procedure Act and exceeds the Department of Homeland Security’s authority, because fee amounts must be tied to administrative costs and set through proper rulemaking.
“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,” New York Attorney General Letitia James said in a statement announcing the suit.
The case marks a significant legal challenge as states push back on federal immigration policy, joining earlier lawsuits by business groups and unions. The district court has yet to schedule hearings or rulings on preliminary motions.
Legal experts say the suit could reshape how far an administration can go in altering immigration policy without Congress.
A decision on a preliminary injunction is expected in early 2026, with states seeking to block the fee while the litigation proceeds.
The outcome could influence future debates over U.S. immigration and labor policy.
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