A coalition of 20 states has launched a major legal challenge against the US government’s decision to impose a six-figure fee on skilled worker visas, arguing the move is unconstitutional and threatens vital public services.
Twenty US states, led by California and Massachusetts, have sued the Trump administration to stop a controversial new rule requiring employers to pay a $100,000 (£78,000) fee for every new H-1B visa petition. The lawsuit, filed in federal court in Boston on Friday (12 December), argues the President overstepped his authority by trying to “rewrite immigration law” without Congress signing off.
The lawsuit targets a presidential proclamation issued in September 2025 that introduced this massive fee, a huge jump from the previous cost of roughly $2,000 to $5,000. The states say this surcharge violates the Administrative Procedure Act and the US Constitution because only Congress has the power to set fees and taxes like this.
While the H-1B visa is famous for helping Silicon Valley tech companies hire software engineers from India and China, the lawsuit points out how devastating the fee would be for the public sector. The attorneys general argue that schools, hospitals, and universities, which also depend heavily on foreign talent to fill shortages in teaching and medicine, can’t absorb this kind of cost. It could force them to cut services.
This is the third major legal challenge to the policy, following similar suits by business groups including the US Chamber of Commerce. The fee applies to new petitions filed after September 21 but doesn’t affect people who already have visas.
“No presidential administration can rewrite immigration law,” said California Attorney General Rob Bonta, who’s co-leading the coalition. “No president can destabilize our schools, our hospitals, our universities on a whim… and no president can ignore the co-equal branch of government, the Congress.”
The White House is standing firm. Vice President JD Vance dismissed the states’ concerns, writing on social media that institutions should “try hiring Americans” instead. Stephen Miller, the White House deputy chief of staff, added that the fee stops companies from using “low-wage foreigners” to replace American workers.
The H-1B visa program has been a hot button issue in US immigration debates for years. Supporters see it as essential for attracting top global talent. Critics argue it drives down wages for American workers. The new $100,000 fee is being seen by analysts as basically a ban on the program for everyone except the wealthiest corporations, fundamentally changing the US labor market.
With the lawsuit now filed in Massachusetts, a legal battle is about to unfold over the coming weeks. If the courts don’t grant an injunction, the fee stays in place, which will likely lead to a sharp drop in visa applications from healthcare and education as the next filing season approaches.
Also Read / Trump’s H-1B Turn: Why He Defends Foreign Skilled Workers Amid ‘America First’ Criticism.
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