A coalition of 19 US states has filed a lawsuit challenging a controversial new proposal by the Trump administration to impose a $100,000 fee on H-1B visas. The legal action underscores growing political and economic opposition to the immigration policy change, which critics argue could disrupt the technology sector, raise costs for businesses, and harm the competitiveness of the US economy.
The Proposed $100,000 H-1B Visa Fee
Under the administration’s proposal, employers seeking to hire skilled foreign workers on H-1B visas could be required to pay a substantial fee of up to USD 100,000 per visa. The policy is aimed at discouraging the use of foreign labour in the US and prioritising domestic employment, according to its proponents.
However, opponents — including state governments, business groups, and industry leaders — argue the fee is punitive, disproportionate, and likely to deter employers from hiring international talent.
Why States Are Suing
The lawsuit, filed by attorneys general from 19 states, contends that the administration’s proposed fee exceeds legal authority and would unfairly burden businesses that rely on skilled international workers. The states claim the policy could lead to:
- Reduced job opportunities in tech and engineering sectors
- Relocation of businesses abroad due to increased labour costs
- Declines in state tax revenues tied to high-income professionals
- Disruption of ongoing projects dependent on specialised foreign talent
Many of these states have booming technology industries, universities, research institutions, and healthcare facilities that depend on H-1B professionals in areas such as software development, biotechnology, advanced manufacturing, and data science.
Economic Impact Concerns
Industry experts warn that a six-figure visa fee could make it prohibitively expensive for companies — especially small and mid-sized firms — to recruit global talent. Many argue that the US already faces a shortage of skilled workers in critical fields and that restrictive policies could push companies to expand operations overseas or relocate them entirely.
The tech sector, in particular, expressed concern that such a fee would reduce innovation, slow product development cycles, and limit competitiveness with global rivals.
Legal Arguments and Court Proceedings
The states’ legal challenge asserts that the Trump administration did not follow proper rule-making procedures and exceeded statutory authority granted by Congress. They argue the fee is arbitrary and capricious and violates administrative law principles.
The court will now weigh these arguments as the case unfolds, with both sides preparing for extended litigation.
Broader Immigration Debate
The lawsuit comes amid a broader national debate on immigration policy, skilled visas, and the role of foreign talent in driving economic growth. While some advocate for tighter control of labour markets, others stress the importance of attracting global professionals to sustain innovation and competitiveness.
Whatever the outcome, the case highlights the tension between economic priorities, political agendas, and immigration reform in the United States.
