Washington | December 13, 2025: The controversy surrounding the H-1B visa program has flared up once again in the United States. A coalition of 20 states, led by California, has filed a lawsuit against the Trump administration over its decision to impose a $100,000 (approximately ₹83 lakh) fee on new H-1B visa applications.
California Attorney General Rob Bonta announced the legal challenge, calling the measure “unlawful, arbitrary, and against public interest.” The lawsuit argues that the Trump administration overstepped its authority by enforcing an exorbitant fee without congressional approval.
The new policy, introduced by the Department of Homeland Security (DHS) under a September presidential directive, applies to all H-1B petitions filed after September 21. Previously, visa processing fees ranged between $1,000 and $7,500 making the current hike the largest in US immigration history.
States Allege Violation of Federal Law
The complaint contends that the policy violates the Administrative Procedure Act (APA) by bypassing mandatory public consultation and notice procedures.
The states argue that the fee is “unrelated to the actual cost of visa processing” and serves a political rather than administrative purpose. Attorney General Bonta stated,
“California’s strength lies in its diversity and global talent. This unlawful financial burden weakens our schools, universities, and hospitals, undermining the very institutions that sustain our communities.”
Public Sector Employers Hit Hardest
The lawsuit highlights the disproportionate impact the new rule will have on schools, universities, and hospitals, many of which are non-profit institutions exempt from the annual H-1B cap but already struggling with labor shortages.
During the 2024–25 academic year, nearly three-quarters of US school districts reported difficulty filling teaching positions, especially in special education, science, and bilingual programs. H-1B visa holders play a key role in bridging these gaps.
The healthcare sector faces a similar crisis. In fiscal year 2024, more than 17,000 H-1B visas were issued for medical professionals including doctors, surgeons, and nurses. The American Medical Association estimates the country could face a shortfall of up to 86,000 physicians by 2036, with shortages already severe in rural and low-income communities.
Trump Administration Defends the Move
The White House has defended the policy as a necessary step to reform the H-1B system and protect American workers. A spokesperson stated that the new rule would prevent program abuse and safeguard domestic wage levels, emphasizing that it was enacted within the bounds of the law.
Critics, however, warn that the measure could damage the US economy and strain international relations, particularly with India, whose nationals account for nearly 70% of all H-1B visa holders.
Lawmakers and industry groups caution that the steep fee could discourage global talent, pushing skilled professionals toward countries like Canada, the UK, and Australia, which offer more welcoming immigration systems.
New Social Media Checks and Tougher Conditions
Alongside the fee hike, the Trump administration has introduced stricter vetting requirements, including mandatory submission of five years of social media history for all H-1B applicants starting December 15.
This requirement, previously applied mainly to tourists, now extends to skilled professionals and students, marking a broad expansion of immigration scrutiny.
Meanwhile, the H-1B visa cap remains fixed at 85,000, despite surging demand. Thousands of Indian applicants continue to face decades-long green card backlogs, making the immigration process increasingly complex and uncertain.
A Broader Legal and Political Battle
The lawsuit marks one of the most significant legal challenges yet to Trump’s restrictive immigration agenda. While the administration frames the fee as a measure to “protect American jobs,” the states and employers call it a “talent tax” that will undermine innovation and global competitiveness.
States including California, New York, Washington, Illinois, and Massachusetts are seeking to have the rule declared unconstitutional. If the court rules in their favor, the decision could reshape the future of US immigration policy not just for H-1B holders, but for the country’s position in the global race for skilled talent.
