More Than 20 US States Unite to Block Trump’s $100,000 Fee on H-1B Visas, Warn of Nationwide Disruption to Schools, Hospitals and Healthcare Systems

Key Points:

On December 23, 2025, more than 20 US states took a strong stand to block the Trump administration’s $100,000 fee on H-1B visas. They opposed the newly introduced annual fee, arguing that it would disrupt the flow of highly skilled foreign talent. The states further warned that the move would likely affect the functioning of schools and hospitals across the country.

Trump’s signed proclamation will pose the biggest challenge for Indian visa holders, as they make up a large share of H-1B recipients. Indian professionals play a significant role in the US healthcare, education, research, and technology sectors. The Trump administration introduced the new fee earlier this year, on September 19, 2025.

The newly imposed fee will apply to new H-1B visa petitions filed after September 21, 2025. Implemented through a series of Department of Homeland Security documents, the policy grants the DHS secretary broad discretion to decide which petitions are subject to the fee or exempt, a provision that states say raises concerns about selective enforcement.  

See Also: H-1B Visa Crackdown to Push US Firms to Shift Operations in India: Report

How is the H-1B Visa a Threat to Public Employers and Foreign Workers?

H-1B visas are nothing less than a “trump card” for the United States of America. These visas allow US employers to hire skilled foreign workers for specialised jobs. The eligibility criteria for such positions require foreign workers to hold at least a bachelor’s degree, including professionals such as doctors, researchers, teachers, and nurses.

Most private companies are limited to 65,000 H-1B visas a year, with an additional 20,000 reserved for advanced degree holders.

A multistate amicus brief backing the plaintiffs in Global Nurse Force, et al. v. Trump asked the US District Court for the Northern District of California to temporarily block the policy. The states argued that the $100,000 fee is illegal and not in the public’s interest.

They explained that the annual H-1B fee would increase labour shortages, harm the economy, and disrupt essential public services. The states also said the fee would make it impossible for public employers to use the H-1B programme.

In filing the amicus brief, Bonta was joined by the attorneys general of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawai‘i, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington and Wisconsin.

California Attorney General Rob Bonta said, “the Trump Administration’s $100,000 visa fee imposes unnecessary and unlawful financial burdens on public employers and will leave essential positions in critical sectors unfilled.” He further added that his office has challenged the imposition of the fee in court.

See Also: Trump’s H-1B visa Proclamation Challenged in US court

“Today, we’re supporting a related challenge. We won’t stop fighting to protect our world-class universities, schools, and hospitals, which thrive by attracting and retaining skilled talent from around the world,” said Attorney General Rob Bonta. 

The United States faces a nationwide teacher shortage, with 74 per cent of school districts reporting difficulty filling open positions in the 2024–2025 school year—especially in special education, physical sciences, bilingual education, and foreign languages, they argued.

In the United States, educators are the third-largest group of H-1B visa holders, comprising nearly 30,000 workers. Around a thousand colleges and universities rely heavily on these educators for teaching and research-related responsibilities.

Because K–12 schools, colleges and universities are typically government or non profit entities, the brief says they are incapable of absorbing an additional $100,000 per hire. States warn this would lead to larger class sizes, fewer courses, and programme cuts, ultimately harming the quality of education and students. 

Along with the education sector, hospitals and healthcare systems will also be affected. The brief says that many hospitals depend on the H-1B visa programme to hire doctors, surgeons, and nurses, especially in low-income areas. In California, nearly 11.4 million people live in areas facing severe shortages of primary care doctors. Across the US, nearly 23,000 H-1B physicians have served in underserved communities over the years.

The states warned that the $100,000 annual fee would be too expensive for hospitals to hire workers through the H-1B visa programme. This could lead to longer wait times, more medical errors, higher death rates, and even hospital closures.

The states argue that, with hospitals already facing reduced subsidies and Medicaid payments, such a fee is not practical. The brief also notes that H-1B workers and their families contribute around $86 billion each year to the US economy and pay billions of dollars in taxes.

The state argued, “at a time when many hospitals are already facing cuts in health insurance subsidies and reduced Medicaid payments, a $100,000 fee for H-1B healthcare workers is simply not feasible.”

Inputs from IANS

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