The $100,000 Firewall: 20 States Fight Trump's H-1B Fee, Calling It a 'Tax on Talent'

20 States to Trump: Stop the $100,000 H-1B Levy, You're Killing Our Hospitals and Schools.

A coalition of 20 U.S. states, led by California and Massachusetts, has filed a major federal lawsuit against the Trump administration challenging the newly imposed $100,000 fee on certain new H-1B visa petitions. The states argue the fee is illegal, exceeds executive authority, and threatens critical U.S. sectors.

The lawsuit claims the fee amounts to an unlawful tax, as only Congress can impose revenue-generating charges, while immigration agencies may collect fees only to cover processing costs. It also alleges a violation of the Administrative Procedure Act (APA), saying the policy was implemented without mandatory public notice and consultation. Attorneys General describe the fee as a “six-figure surcharge designed to dismantle the H-1B programme.”

The states warn the fee will hit Indian professionals hardest, who make up the majority of H-1B holders in IT, healthcare, engineering, and education. Public hospitals, schools, and universities may be unable to afford the cost, worsening shortages of doctors, healthcare workers, and teachers.

Filed in federal court in Massachusetts, the case—along with similar lawsuits by business groups—will determine whether the fee stays in place for the upcoming H-1B lottery season, directly affecting future opportunities for skilled Indian workers in the U.S.