19 US states sue Trump admin over ‘unlawful’ USD 100,000 fee on new H-1B visas

A widening legal revolt is taking shape across the United States as 19 states move to block what they call an “unlawful” Trump administration bid to dramatically raise the cost of hiring skilled foreign workers — a move critics warn could deepen labour shortages in hospitals, classrooms and technology hubs nationwide.

Led by New York attorney general Letitia James, a coalition of 18 other attorneys general on Friday filed a lawsuit in the US District Court for the District of Massachusetts, challenging the administration’s decision to impose a one-time USD 100,000 fee on new H-1B visa petitions. The states argue the fee hike is massive, abrupt and imposed without legal authority or due process.

The H-1B programme, a cornerstone of the US skilled-immigration system and heavily used by Indian professionals, allows employers to hire highly trained workers in specialised fields. The attorneys general say the new fee threatens to place the programme out of reach for public institutions, government agencies and non-profit employers that rely on H-1B workers to keep essential services running.

“H-1B visas allow talented doctors, nurses, teachers and other professionals to serve communities in need across the country,” James said in a statement. “The administration’s illegal attempt to sabotage this programme will make it harder for New Yorkers to get health care, disrupt our children’s education, and harm our economy.”

The lawsuit follows an announcement by President Donald Trump in September that his administration would levy the steep new charge on all incoming H-1B applications — a figure the states describe as a “sudden” and “extraordinary” escalation over existing fees.

According to the coalition, the move violates both the Administrative Procedure Act and the Immigration and Nationality Act, having been enacted without congressional approval or the required rule-making process.

Joining New York in the legal challenge are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, North Carolina, New Jersey, Oregon, Rhode Island, Vermont, Washington and Wisconsin.

The states warn that the fee would severely limit their ability to recruit skilled workers to fill chronic labour gaps, particularly in health care and education, with rural and underserved communities bearing the heaviest burden.

In New York, immigrants make up more than a third of the health-care workforce, and public universities and hospitals depend heavily on H-1B professionals, the lawsuit notes. In the state’s 16 rural counties, there are just four primary care physicians for every 10,000 residents, while hospitals already face a nursing shortfall projected to reach 40,000 by 2030 — a crisis the states say would only worsen if access to H-1B workers is curtailed.

Nationally, the American Medical Association estimates the US could face a shortage of 86,000 physicians by 2036, a gap H-1B professionals are expected to help fill.

Higher education would also feel the shock. At least 930 colleges and universities across the US employ H-1B visa holders, more than half of them public four-year institutions and over 10 per cent medical schools. In New York alone, the State University of New York employs nearly 700 H-1B workers, many serving students in rural and suburban communities.

The coalition argues that restricting access to H-1B visas would mean more crowded classrooms, disrupted research, and diminished academic output at leading institutions.

Other sectors — from technology and finance to the arts — would also be hit. In New York, more than 13,000 H-1B visa holders work in these industries, filling roles that states say are vital to economic growth.

California Attorney General Rob Bonta echoed those concerns, calling the USD 100,000 fee an “unnecessary” and “illegal” burden on public employers.

“The Trump administration thinks it can raise costs on a whim,” Bonta said. “But the law says otherwise. We are going to court to protect Californians’ access to the world-class schools, universities and hospitals that define this state.”

The lawsuit also situates the dispute within a longer history. The US has maintained a skilled-worker visa programme since the 1950s, with the modern H-1B system established in the 1990s to allow employers to hire foreign professionals in specialised occupations for up to six years.

Now, the attorneys general argue, that system faces an existential threat — one that could ripple far beyond immigration policy and into the very fabric of America’s workforce.

With PTI inputs