A coalition of 20 US states, led by California, has filed a lawsuit in opposition to the Trump administration over a brand new $100,000 payment imposed on H-1B visas, arguing that the transfer is illegal and threatens entry to important public companies similar to healthcare and schooling.The authorized problem, introduced by California Legal professional Normal Rob Bonta, targets a coverage launched by the Division of Homeland Safety (DHS) following a presidential proclamation issued in September. The payment applies to all new H-1B visa petitions filed after September 21, and represents an unprecedented enhance from the prevailing costs, which generally vary from below $1,000 to round $7,500.
Within the lawsuit, the attorneys normal argue that the Trump administration has exceeded its authority by imposing a payment far past what Congress has authorised. They are saying the coverage violates the Administrative Process Act (APA) by bypassing obligatory notice-and-comment rulemaking and by setting a cost unrelated to the precise value of processing visa functions.

Bonta mentioned the measure runs counter to the aim of the H-1B programme, which permits US employers to rent extremely expert overseas staff in “specialty occupations” requiring a minimum of a bachelor’s diploma. These embody medical doctors, nurses, researchers, academics and engineers.“California is aware of that when expert expertise from all over the world joins our workforce, it drives our state ahead,” Bonta mentioned, warning that the payment would place “unlawful monetary burdens” on public employers and worsen current labour shortages.The coalition, which incorporates states similar to New York, Illinois, Washington and Massachusetts, is in search of to dam the coverage and have it declared unconstitutional.
Influence on faculties, hospitals and public companies
The states argue that the payment will hit public sector and non-profit employers hardest, significantly faculties, universities and hospitals, lots of that are exempt from the annual H-1B cap of 65,000 visas. These establishments, they are saying, can’t soak up a further $100,000 value per rent with out reducing companies or diverting funds from different programmes.The lawsuit highlights the dimensions of current shortages. Through the 2024–25 college yr, practically three-quarters of US college districts reported difficulties filling instructing posts, particularly in particular schooling, science and bilingual schooling. Educators are among the many largest occupational teams utilizing H-1B visas, with tens of 1000’s employed throughout the nation.Healthcare is one other main concern. Within the 2024 fiscal yr, nearly 17,000 H-1B visas have been issued for medical and well being occupations, together with physicians and surgeons. The US is projected to face a shortfall of as much as 86,000 medical doctors by 2036, a spot that’s already acute in rural and low-income areas, together with elements of California.
Trump tightens grip on H-1B visas with greater charges, deeper vetting
The Trump administration has sharpened its deal with the H-1B visa programme as a part of a broader immigration crackdown, signalling more durable scrutiny, greater prices and expanded knowledge assortment. A brand new proposal seeks 5 years of social media historical past from all guests to the US, together with these from visa-waiver nations such because the UK, Japan and Australia. Whereas not but remaining, the measure displays a wider push in the direction of deeper vetting that goes properly past vacationers and instantly impacts expert migrants.For H-1B candidates, social media vetting is already obligatory from December 15, alongside stricter compliance checks. The affect is magnified by structural bottlenecks. The H-1B cap stays frozen at 85,000 visas regardless of hovering demand, whereas Indians account for over 70% of approvals. Even those that safe visas face decades-long inexperienced card backlogs attributable to per-country limits.
White Home defends transfer amid wider backlash
The Trump administration has defended the payment as a part of a broader effort to reform the H-1B system and prioritise American staff. A White Home spokesperson mentioned the coverage would discourage abuse of the programme and shield home wages, insisting the motion was lawful.Critics, nonetheless, say the measure dangers damaging the US financial system and worldwide relationships. Lawmakers have warned that the payment disproportionately impacts Indian professionals, who maintain an estimated 70 per cent of H-1B visas, and will pressure US–India ties whereas driving expert staff in the direction of nations with extra welcoming immigration techniques.
