19 US states sue Trump administration over proposed $100,000 fee on new H-1B visas

Highlights

• 19 US states sue over proposed $100,000 H-1B visa fee
• States call the move unlawful and legally flawed
• Attorneys general warn of labour shortages in healthcare and education
• Lawsuit says public and non-profit employers will be hit hardest

Nineteen US states have sued the Trump administration over what they describe as an “unlawful” decision to impose a $100,000 fee on new H-1B visa petitions, warning that the move will worsen labour shortages in key sectors such as healthcare, education and technology.

New York Attorney General Letitia James, along with 18 other attorneys general, filed the lawsuit on Friday in the US District Court for the District of Massachusetts, challenging what they called a “massive” increase in H-1B fees imposed without legal authority or due process.

The H-1B visa programme allows highly skilled foreign professionals to work temporarily in the US and is widely used by Indian nationals.

The coalition argued that the proposed fee would make the programme effectively inaccessible for government and non-profit employers that rely on H-1B workers to deliver essential services in healthcare, education, technology and other fields.

“H-1B visas allow talented doctors, nurses, teachers and other workers to serve communities in need across our country,” James said in a statement. “The administration’s illegal attempt to ruin this programme will make it harder for New Yorkers to get healthcare, disrupt our children’s education, and hurt our economy. I will keep fighting to stop this chaos and cruelty targeting immigrant communities.”

In September, US President Donald Trump announced that his administration would levy a one-time $100,000 fee on all new H-1B applications — a move the attorneys general described as a “sudden” and “massive” increase over existing charges.

The lawsuit contends that the fee violates the Administrative Procedure Act and the Immigration and Nationality Act, as it was imposed without congressional approval or the required rule-making process.

Joining James in the lawsuit 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 coalition said the fee would severely restrict states’ ability to hire workers through the H-1B programme to address labour shortages, disrupting access to education, healthcare and other critical services. The impact would be especially severe for rural and underserved communities already facing shrinking workforces, it warned.

In New York alone, more than a third of healthcare workers are immigrants, and public universities and hospitals rely heavily on H-1B professionals, according to the lawsuit. In the state’s 16 rural counties, there are currently four primary care physicians for every 10,000 people. New York hospitals also face a nursing shortage estimated to reach 40,000 nurses by 2030 — a gap the states say would widen further with reduced access to H-1B visas.

Nationwide, the American Medical Association estimates the US will face a shortage of 86,000 physicians by 2036, a shortfall H-1B workers are expected to help fill.

At least 930 colleges and universities across the US employ staff on H-1B visas. More than half are public four-year institutions, and over 10 percent are medical schools. In New York, the State University of New York (SUNY) employs 693 H-1B visa holders, many of whom serve students in rural and suburban areas.

The lawsuit argues that limiting access to H-1B visas would lead to more crowded classrooms and disrupt critical research at leading universities. Other industries — including technology, finance and the arts — also rely heavily on H-1B workers. More than 13,000 H-1B visa holders are employed in these sectors across New York state.

California Attorney General Rob Bonta said the proposed fee would create “unnecessary” and “illegal” financial burdens on public employers and providers of essential services, worsening labour shortages.

“The Trump administration thinks it can raise costs on a whim, but the law says otherwise,” Bonta said. “We are going to court to defend California’s residents and their access to the world-class universities, schools and hospitals that make Californians proud to call this state home.”

The US has had a visa programme for skilled temporary workers since the 1950s. The current H-1B programme was established in the 1990s and allows employers to hire workers in “specialty occupations” for up to six years.

PTI