States Challenge Trump Administration’s $100,000 H1B Petition Fee

Nineteen states have filed suit in federal court seeking to block a Trump administration policy that requires a $100,000 payment to accompany certain new H1B petitions. The states argue the measure is unlawful, was put in place without required procedures, and harms public and private employers seeking to fill specialized roles in fields such as education, healthcare, and research.

Details of Lawsuit

The challenge targets a presidential proclamation issued 19.Sep.2025 that restricts entry for certain H1B specialty-occupation workers unless the petition is accompanied by a $100,000 payment. In their complaint, the states contend that immigration and visa-related fees generally are tied to administrative costs set by Congress and implementing agencies, and that the $100,000 payment functions as a revenue-raising or punitive measure rather than a cost-based processing fee. They also allege the policy was implemented through a series of agency documents without the notice-and-comment rulemaking typically required for significant policy changes.

Stance Taken by Trump Administration

The administration has defended the policy as a lawful response to perceived abuses of the H1B program, which it says can be used to displace U.S. workers and suppress wages in certain sectors. The proclamation frames the payment requirement as part of a broader effort to combat these perceived ills, while still allowing employers to hire what it describes as highly skilled foreign workers.

Conclusion

The case is part of a broader wave of challenges to recent changes affecting employment-based immigration, with business and employer groups also scrutinizing whether major restrictions and fee increases can be implemented via executive action rather than through Congress and formal agency rulemaking.

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