WASHINGTON — More than 20 U.S. states have moved to block the Trump administration’s new $100,000 fee on H-1B visas, warning that the policy would disrupt schools and hospitals nationwide and severely restrict access to skilled foreign workers critical to public services.
The challenge carries particular significance for Indian professionals, who make up a dominant share of H-1B visa holders and are widely employed in U.S. healthcare, education, research, and technology sectors. State officials argue that public institutions, especially schools and hospitals, cannot absorb the steep new cost.
In a multistate amicus brief filed in support of plaintiffs in Global Nurse Force et al. v. Trump, the states urged the U.S. District Court for the Northern District of California to issue a preliminary injunction blocking the policy. The brief argues that the fee is unlawful, contrary to the public interest, and would worsen labor shortages, weaken the economy, and disrupt essential services.
“The Trump administration’s $100,000 visa fee imposes unnecessary and unlawful financial burdens on public employers and will leave essential positions in critical sectors unfilled,” California Attorney General Rob Bonta said in a statement.
Bonta said his office has challenged the fee in court and is supporting related litigation to protect universities, schools, and hospitals that rely on skilled international talent.
The administration imposed the unprecedented fee on September 19, 2025, applying it to new H-1B petitions filed after September 21. Implemented through Department of Homeland Security guidance, the policy gives the DHS secretary broad discretion to determine which petitions are subject to the fee or exempt, a provision the states say raises concerns about selective enforcement.
H-1B visas allow U.S. employers to hire highly skilled foreign nationals in specialty occupations requiring at least a bachelor’s degree, including physicians, researchers, nurses, and educators. While most private-sector H-1B visas are capped at 65,000 annually, with an additional 20,000 for advanced degree holders, many government and nonprofit research institutions are exempt to ensure public service needs are met.
The states argue that the $100,000 fee would effectively shut public employers out of the program.
They point to a nationwide teacher shortage, noting that 74 percent of U.S. school districts reported difficulty filling open positions during the 2024–2025 school year, particularly in special education, physical sciences, bilingual education, and foreign languages. Educators are the third-largest occupational group among H-1B holders, with nearly 30,000 working under the program, and close to 1,000 colleges and universities relying on H-1B staff for teaching and research.
Because K–12 schools and most colleges and universities are government or nonprofit entities, the brief argues they cannot absorb an additional $100,000 per hire. States warn this could lead to larger class sizes, fewer course offerings, and program cuts that directly affect students.
Hospitals and healthcare systems would face similar challenges. The brief notes that hospitals rely on H-1B visas to recruit physicians, surgeons, and nurses, particularly in low-income and working-class communities. About 11.4 million Californians live in areas with primary care shortages, and nearly 23,000 H-1B physicians have worked in underserved communities nationwide over the years.
The United States is projected to face a shortfall of 86,000 physicians by 2036 as the population ages and demand for care increases. States warn that a $100,000 fee would make it financially impossible for many hospitals to hire H-1B healthcare workers, leading to understaffing, longer wait times, higher risks of medical errors, increased mortality, and potential hospital closures.
“At a time when many hospitals are already facing cuts in health insurance subsidies and reduced Medicaid payments, a $100,000 fee for H-1B healthcare workers is simply not feasible,” the states said.
The brief also highlighted the broader economic impact of the H-1B program, noting that visa holders and their dependents contribute an estimated $86 billion annually to the U.S. economy and pay billions in federal, state, and local taxes.
Attorneys general from Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawai‘i, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin joined California in filing the brief.
The court challenge comes amid a broader Trump administration push to tighten legal immigration pathways. For Indian professionals, who represent a substantial share of new H-1B applicants, the outcome of the case could significantly shape access to U.S. public-sector jobs in healthcare, education, and research in the years ahead. (Source: IANS)
