California and 19 other states are suing the White House over its $100,000 fee imposed on new H-1B visa petitions.
Here are nine things to know:
1. In a Dec. 12 lawsuit, California Attorney General Rob Bonta, a Democrat, and a coalition of 19 other attorneys general allege the fee violates the U.S. Constitution and the Administrative Procedure Act, according to a Dec. 12 news release from Mr. Bonta’s office.
2. Mr. Bonta and Massachusetts Attorney General Andrea Joy Campbell are leading the coalition, which includes attorneys general of Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, Nevada, North Carolina, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington and Wisconsin.
3. A White House spokesperson shared the following statement with Becker’s on Dec. 12:
“President Trump promised to put American workers first, and his commonsense action on H-1B visas does just that by discouraging companies from spamming the system and driving down American wages, while providing certainty to employers who need to bring the best talent from overseas. The Administration’s actions are lawful and are a necessary, initial, incremental step towards necessary reforms to the H-1B program.”
4. The fee was introduced in a Sept. 19 proclamation by President Donald Trump, stating the fee would apply to all new H-1B visas beginning Sept. 21. The White House later confirmed the fee applies only to new applicants outside the U.S. Employers are not required to pay the fee for individuals already residing in the country, such as international students.
5. H-1B visas allow U.S. employers to hire skilled foreign workers in roles requiring specialized skills, including physicians and nurses. In fiscal 2024, nearly 17,000 H-1B visas were granted for medicine and health roles — about half to physicians and surgeons, the release said. The U.S. is projected to face a shortage of 86,000 physicians by 2036.
6. In the lawsuit, the coalition alleges the policy “is a clear violation of the law because it imposes a massive fee outside of the bounds of what is authorized by Congress and contrary to Congress’s intent in establishing the H-1B program, bypasses required rulemaking procedures, and exceeds the authority granted to the executive branch under the Administrative Procedure Act (APA),” according to the release.
7. The lawsuit, filed in Massachusetts federal court, joins at least two others challenging the fee, Reuters reported Dec. 12. Employers typically pay between $2,000 and $5,000 in fees, according to the report.
8. Some hospitals and health systems previously paused H-1B petitions due to the new cost. Others said they were awaiting further guidance and evaluating the potential effects on their workforce pipelines.
9. Foreign clinicians typically enter the U.S. on one of two visa types: H-1B and J-1. The H-1B is a temporary professional worker visa for specialty occupations and allows “dual intent,” meaning holders can apply for a green card while maintaining H-1B status.
“The Department of Justice is committed to protecting American workers and fully supports President Trump’s America First agenda,” a Justice Department spokesperson said in a statement shared with Becker’s on Dec. 12. “We will continue to hold companies accountable when they unlawfully exploit American workers, and defend President Trump’s efforts to provide certainty to those employers using the H-1B program as intended.”
