States Challenge Trump Administration’s $100,000 H‑1B Fee

Key Point  

• 20 states have sued the Trump administration, challenging its new $100,000 H‑1B visa petition fee as unlawful and harmful to employers 

States on H-1B $100,000 Fee  

On December 12, 2025, California Attorney General Rob Bonta announced a lawsuit against the Trump administration’s newly imposed $100,000 fee on H‑1B visa petitions. The lawsuit argues that the fee:

• Exceeds congressional authority; and
• Is unlawful and would exacerbate labor shortages in critical industries such as healthcare, research and technology. 

Massachusetts Attorney General Andrea Joy Campbell also joined the coalition of states challenging the administration’s immigration policies. In a related filing, Campbell emphasized that coercive measures — including excessive fees and threats to withhold federal funding — undermine universities, hospitals and employers that rely on global talent. 

In addition to California and Massachusetts, a coalition of 18 other states joined the lawsuit — with attorneys general from Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, Nevada, North Carolina, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington and Wisconsin.

Background on the H-1B Fee  

On September 19, 2025, President Trump issued a proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers,” conditioning H-1B visa entry on a $100,000 payment by sponsoring employers. USCIS, the State Department and CBP enforce the fee on all new petitions that employers file after September 21, 2025. 

For a detailed breakdown of the fee and its implications, visit our H-1B Fee FAQ. 

Next Steps in the Legal Process

Federal district courts will hear the lawsuits, and judges may consolidate or separate the cases as needed. Plaintiffs are likely to seek preliminary injunctions to block the $100,000 H‑1B fee during litigation. This action could temporarily relieve employers of the obligation. Depending on the outcomes at the district level, the parties will likely pursue appeals. Ultimately, conflicting rulings could result in the issue being sent to the U.S. Supreme Court.

Other Ongoing Litigation 

Other ongoing litigation related to the $100,000 H‑1B fee includes:

• A lawsuit filed by religious groups and individual workers in the Northern District of California, led by Global Nurse Force and several national unions. The complaint argues the fee is unlawful. It highlights that the administration announced the fee with less than 36 hours’ notice. It asserts the fee exceeds presidential authority under the Immigration and Nationality Act (INA). It warns that the policy threatens workforce pipelines in healthcare, education and research.
• A lawsuit by the U.S. Chamber of Commerce contends that the fee imposes unlawful burdens on employers and undermines the ability of U.S. businesses to attract and retain skilled foreign workers. 

Access Your FY 2027 H‑1B Planning Guide

The H-1B program remains crucial for attracting and retaining high-skilled talent. However, FY 2027 presents major challenges for HR and mobility teams as rules, costs and selection criteria continue to shift. 

That’s why we created The $100K Question: How Trump’s H‑1B Changes Impact Your 2026 Strategy. This resource serves as a strategic guide to help employers assess risk, prioritize roles and plan budgets amid ongoing policy changes. 

Complete the form to access the full guide and equip your team with the insights necessary to navigate an evolving U.S. immigration landscape.