Dem states sue over $100k H-1B fee as MAGA fumes over jobs flight to India

The TOI correspondent from Washington: A coalition of 20 US states led by Democratic attorneys general filed a federal lawsuit Friday challenging the Trump administration’s controversial $100,000 fee on new H-1B visa applications, claiming the policy exceeds presidential authority and threatens US labor markets and critical services.

The lawsuit, filed in the US District Court for the District of Massachusetts and spearheaded by California Attorney General Rob Bonta, argues that the fee far surpasses what federal law allows and was implemented without proper legal procedures. Traditionally, employers pay between roughly $960 and $7,600 in combined regulatory and statutory fees for H-1B petitions; the new six-figure surcharge represents an unprecedented jump.Democratic officials contend that the Department of Homeland Security (DHS) lacked authority to impose such a steep fee without congressional approval and bypassed required notice-and-comment rulemaking under the Administrative Procedure Act. They assert that the fee will dampen employers’ ability to hire skilled foreign professionals US industries rely on — particularly in tech, healthcare, research and education.

State attorneys general emphasized the practical impacts of the rule, warning that schools, universities, hospitals and research institutions could struggle to fill specialized positions. Maryland’s AG noted teacher and researcher shortages, while Oregon and Vermont officials highlighted risks to local economies and public services that depend on H-1B workers, some 70 percent of whom are from India. Proponents of the fee say it is intended to curb perceived abuses of the H-1B system and protect US jobs.

But Democratic critics counter that the policy will worsen labor shortages in critical sectors and undercut US competitiveness in science and technology.The states’ lawsuit adds to a broader legal and political battle over the H-1B system. In October, the US Chamber of Commerce and several industry groups also filed separate lawsuits alleging the fee is unlawful and threatens business investment and innovation.With hearings expected in coming weeks, the case is shaping up as a key test of executive authority over immigration policy — and of broader tensions between efforts to protect domestic labor and needs of a globalized economy reliant on high-skilled talent.