Since the beginning of Donald Trump’s second term in January, legal disputes have continued over his administration’s policies, especially with Democratic states. This time, an important immigration policy of the Trump administration, the $1,00,000 fee increase on H-1B visas, is going to be challenged in court by 19 states. These include California, New York, Illinois and other states.

Lawsuit over H-1B visa fee increase
California and other states have filed lawsuits against the Trump administration. The H-1B program allows US employers to hire foreign workers for specialized occupations, as described by the US Department of Labor.

California Attorney General Rob Banta wrote on Twitter that Trump’s illegal new $100,000 H-1B visa fee could hinder the recruitment of teachers, physicians, researchers, nurses and other critical workers and jeopardize California’s ability to provide essential services. According to a press release from Banta’s office, this new fee could pose a costly barrier to employers, especially public and government institutions, who are trying to fill these positions.

When and where will the case be filed
According to Reuters report, this lawsuit will be filed on Friday (local time) and will be presented in the Federal Court of Massachusetts. This will be at least the third legal challenge. Earlier this increased fee was challenged by the US Chamber of Commerce and a coalition of unions, employers and religious groups.

What is this policy?
According to Banta’s office, the lawsuit states that this policy, implemented by the Department of Homeland Security (DHS), is a clear violation of the law. This is because it imposes burdensome fees outside the limits authorized by Congress, goes against the intent of Congress in establishing the H-1B program, bypasses essential rulemaking processes, and exceeds the power granted to the executive branch under the Administrative Procedure Act (APA).

Generally, the H-1B visa fee is set by DHS under the APA’s notice and comment process and is limited to the amount necessary to carry out the agency’s work. The lawsuit says that while an employer typically pays fees ranging from $960 to $7,595 when filing an initial H-1B petition, the new increased fee far exceeds the actual cost.

Banta’s statement
“No president can arbitrarily destabilize our schools, hospitals and universities, and no president can ignore Congress, the Constitution or the law,” Banta said at a press conference on Friday.

charge of disregard of procedure
The states also alleged that the increased fees were issued without the notice-and-comment process required by the APA and did not fully consider the impacts, particularly on the delivery of critical services by government and non-profit entities.

State filing suit
Besides California, the other states are: Massachusetts, Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, Nevada, North Carolina, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, and Wisconsin. Attorneys General of California Rob Banta and Joey Campbell of Massachusetts are leading attorneys general of other states in filing the lawsuit.

US President Donald Trump signed an order on Friday (September 19, 2025), under which there is a provision to increase the H-1B visa fee to US $ 1,00,000, or about Rs 90 lakh. Trump’s move is expected to adversely affect Indian employees working in America. Meanwhile, a White House official on Saturday (20 September 2025) clarified that a fee of US $ 1,00,000 for H-1B visa would apply only to new applicants.

What is H-1B visa?

The H-1B visa is a non-immigrant work visa of America. Under this visa, American companies can hire foreign employees. This visa is usually given to scientists, software engineers, programmers and technical experts. Initially it is valid for three years and later it can be extended by six years.

New rule and date

According to the press release of the White House, new rules related to H-1B visa will be applicable from 21 September 2025. President Donald Trump has announced that now a fee of US $ 100,000 will be mandatory with every application. Applications without fees will be considered canceled and such employees will not get admission in America.

Tech companies response

After the announcement of Trump, big tech companies immediately reacted. Microsoft advised its employees to stay in America. Amazon, Meta and Google’s original company Alphabet asked the employees who went out to return. Financial organization JP Morgan also issued a similar consultation.

What is Trump’s argument on changes in visa rules?

President Trump says that the H-1B visa is being misused. Many outsourcing companies are dependent on this and is a threat to national security. Law enforcement agencies are now investigating this misuse.

New strictness on foreign employees

According to the new rule, companies will have to get a certificate of fee payment before any H-1B petition. This document should be safe with them and the government will have to show it if needed.

What changes in new rules on H-1B visa?

– This is a one-time fee, which will be levied only with every new H-1B visa application.

– This rule will apply only to new visas. Not on old visa holders or their renewal.

– This rule will be applicable from the next H-1B lottery cycle for the first time.

– It will not have any effect on the winners of the 2025 lottery.

– There is no concern for those who already have H-1B visas or who have won 2025 lottery.

Also read: H-1B visa now 88 lakhs … New update on Trump’s decision, America said- rules apply only to new applications