Reporter: MD Rubel Islam
Published: Dec -13 , 2025 — 9:41 AM (GMT+6)
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| Trump’s $100,000 H-1B visa fee sparks lawsuits from multiple U.S. states, raising concerns for tech, education, and healthcare sectors. |
Detailed News”
- "Trump’s $100,000 H-1B Fee Sparks Legal Challenge Across U.S. States"
Trump’s $100,000 H-1B Visa Fee Sparks Legal Battle Across U.S. States
The Trump administration's new $100,000 H-1B visa fee has ignited a wave of legal challenges from multiple U.S. states, raising serious questions about the future of skilled foreign labor in the country. This unprecedented move has not only alarmed employers but also threatens critical sectors such as education and healthcare, where foreign workers play an essential role.
What Is the New $100,000 H-1B Visa Fee?
In September 2025, President Trump announced a significant hike in the H-1B visa fees, increasing the cost to $100,000 for new applicants. Previously, employers paid between $2,000 and $5,000 to sponsor foreign employees under this program. The H-1B visa program allows U.S. companies, especially in the tech industry, to hire foreign workers in specialty fields where local talent is scarce.
The administration claims that the fee will prevent abuse of the H-1B program and ensure that only employers genuinely in need of highly skilled workers participate. However, critics argue that this fee far exceeds the actual processing costs and could create unnecessary financial burdens for businesses.
States Take Legal Action
California, joined by 19 other U.S. states including New York, Massachusetts, Illinois, New Jersey, and Washington, filed a lawsuit in federal court in Boston challenging the fee. California Attorney General Rob Bonta emphasized that the fee violates federal immigration law, which allows the government to collect only fees necessary to cover the administrative costs of visa programs.
Bonta argued that the fee threatens essential public services. Education and healthcare providers, who rely heavily on H-1B workers, may face staff shortages, putting pressure on services that millions of Americans depend on daily.
Why the Tech Industry Is Concerned
The tech industry, headquartered largely in California, has a high dependency on H-1B visa holders. Many startups and large companies rely on highly skilled foreign workers to remain competitive globally. The $100,000 fee could discourage these companies from hiring abroad, limiting access to talent in specialty fields like software development, AI, engineering, and biotechnology.
Industry experts warn that the fee may exacerbate labor shortages and slow down innovation. Employers might struggle to fill positions essential to maintaining operations, launching new products, and competing in the international market.
The White House Response
In response to ongoing legal challenges, the White House maintains that the new fee is a lawful exercise of presidential power. Officials argue that the $100,000 fee is intended to prevent misuse of the H-1B program, ensuring that companies cannot replace American workers with cheaper foreign labor unnecessarily.
The administration clarified that the fee applies only to new H-1B recipients entering the United States after September 21, 2025. Existing H-1B visa holders or those who applied before that date are not affected by the new rule.
Business and Legal Community Reaction
The U.S. Chamber of Commerce, the largest business lobby in the country, along with a coalition of unions, employers, and religious organizations, has filed separate lawsuits challenging the fee. A judge in Washington, D.C., is scheduled to hold a hearing next week to consider the Chamber's lawsuit.
Business groups argue that H-1B visa holders fill critical skill gaps in specialty fields. By imposing such a high fee, the Trump administration risks stifling economic growth, increasing labor shortages, and discouraging foreign talent from entering the U.S. workforce.
Potential Impact on U.S. Workers and the Economy
Critics of H-1B visas often argue that foreign workers can replace American employees at lower wages. However, the reality is that many sectors—tech, healthcare, and education—face a genuine shortage of qualified American workers. H-1B visa holders are essential to filling these gaps, ensuring continuity in services and supporting innovation in critical industries.
By making it prohibitively expensive for companies to hire skilled foreign workers, the $100,000 fee may inadvertently worsen labor shortages rather than protect American jobs.
Education and Healthcare Sectors at Risk
Education and healthcare services are particularly vulnerable. Schools, universities, and hospitals often depend on H-1B professionals to maintain staffing levels. A sudden increase in visa fees could force institutions to cut services or delay projects, directly affecting students, patients, and communities nationwide.
The fee could also increase operational costs, forcing employers to pass additional expenses to consumers, potentially impacting tuition rates, healthcare costs, and service accessibility.
The Constitutional Debate
California’s lawsuit emphasizes that the U.S. Constitution reserves the power to generate revenue for Congress, not the President. By imposing a $100,000 visa fee unilaterally, critics argue that Trump overstepped his authority, making the fee potentially unlawful.
Furthermore, Bonta’s office notes that the fee far exceeds the actual cost of administering H-1B visa applications, highlighting the lack of a legal basis for such an extraordinary surcharge.
Looking Ahead: What This Means for Employers
Employers nationwide are watching the legal battle closely. Many companies fear uncertainty, which could affect hiring decisions and investment strategies. Tech giants, small businesses, and healthcare institutions alike may need to adjust their workforce planning depending on the outcome of the lawsuits.
The federal court’s decision will likely set a precedent for how future administrations can regulate visa fees and manage foreign labor programs, affecting the broader U.S. economy and global competitiveness.
Conclusion
The $100,000 H-1B visa fee is more than a financial issue—it is a legal and economic flashpoint. With multiple lawsuits challenging the fee and potential implications for the tech industry, healthcare, and education, the situation underscores the delicate balance between protecting American workers and sustaining access to critical foreign talent.
As California and other states pursue legal remedies, the outcome could reshape the future of the H-1B program and influence U.S. immigration policy for years to come. For employers, foreign workers, and the American workforce, these developments will be closely watched, as the stakes could not be higher.
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