California Attorney General Rob Bonta has announced a lawsuit against the Trump Administration, challenging a new policy that imposes a $100,000 fee on new H-1B visa petitions. The lawsuit is joined by attorneys general from 19 other states.
The H-1B visa program allows U.S. employers to hire highly skilled foreign workers for specialized roles in fields such as healthcare and education. The new fee, implemented by the Department of Homeland Security (DHS), would create significant financial barriers for employers, particularly those in the public sector and government organizations.
Attorney General Bonta stated, “As the world’s fourth largest economy, California knows that when skilled talent from around the world joins our workforce, it drives our state forward. President Trump’s illegal $100,000 H-1B visa fee creates unnecessary — and illegal — financial burdens on California public employers and other providers of vital services, exacerbating labor shortages in key sectors. The Trump Administration thinks it can raise costs on a whim, but the law says otherwise. 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.”
Under current law, Congress sets limits on both the number of H-1B visas issued annually and the fees associated with them. Most private employers face an annual cap of 65,000 visas with an additional 20,000 available for individuals holding advanced degrees. Many government and nonprofit organizations are exempt from these caps due to their public service missions.
On September 19, 2025, President Trump issued a proclamation establishing this unprecedented $100,000 fee for new H-1B visa petitions. DHS began enforcing this policy for applications filed after September 21, 2025. The Secretary of Homeland Security now has broad discretion over which petitions are subject to or exempted from this fee.
The coalition argues that this high fee could worsen staffing shortages in critical areas like education and healthcare by making it harder for institutions to hire necessary personnel. In recent years there have been ongoing teacher shortages across the United States; during the 2024–2025 school year most districts reported difficulties filling open positions—especially in special education and certain academic subjects—and educators represent one of the largest groups among H-1B holders.
Healthcare facilities also depend heavily on foreign-trained professionals through H-1B visas; nearly half of these medical workers are physicians or surgeons according to recent data. Projections indicate a growing shortage of doctors nationwide by 2036 if current trends continue.
The lawsuit claims that setting such a high fee violates both administrative law procedures under the Administrative Procedure Act (APA) and exceeds authority granted by Congress regarding immigration fees—which must reflect actual agency costs rather than arbitrary amounts set without required notice-and-comment rulemaking processes.
Attorney General Bonta is leading this legal effort alongside Massachusetts Attorney General Andrea Joy Campbell with support from attorneys general representing Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, Nevada, North Carolina, New Jersey, New York, Oregon Rhode Island Vermont Washington Wisconsin.
A copy of the lawsuit will be made available online here.
