States Sue Over Trump’s $100,000 H‑1B Fee: A High-Stakes Fight Over Skilled Workers

Advanced | December 23, 2025

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Trump H‑1B visa application fee: States Take It to Court

A coalition of 20 U.S. states has filed a lawsuit to block a new $100,000 fee on new H‑1B visa petitions—a policy tied to former President Donald Trump and implemented through the Department of Homeland Security. The states argue the move is illegal and would make it drastically harder for employers to hire specialized workers in fields like tech, healthcare, and higher education. (Reuters)

What the Lawsuit Says (In Plain English)

The core argument is simple: immigration fees are supposed to cover administrative costs, not act like a giant “paywall” that changes the whole program. The states say only Congress can authorize a fee this large, and they also argue the policy skipped required rulemaking steps under federal administrative law. (Reuters, Michigan AG)

Why $100,000 Changes the Game

In many cases, employers previously paid a few thousand dollars in combined H‑1B-related fees—reporting has put typical totals roughly in the $2,000–$5,000 range. Jumping to $100,000 doesn’t feel like a “fee increase.” It feels like a gatekeeping tool that could price many employers out of the program. (Reuters)

States also say the impact won’t be equal. Large companies may be able to absorb the cost, but public universities, hospitals, and state agencies could find it nearly impossible—especially in areas already dealing with staffing shortages. (Michigan AG)

The Political Argument Behind the Fee

Supporters of tougher rules say the H‑1B program can be abused and may undercut American workers. Trump has framed the new Trump H‑1B visa application fee as a way to discourage employers from using the program to replace U.S. workers with cheaper labor. Business groups and many state governments push back, saying the program exists to fill real skills gaps—and that a fee this high is basically a hidden ban. (Reuters, Bloomberg)

What Happens Next

The lawsuit was filed in federal court, and it joins other challenges already in progress—including suits from business and education groups. Separately, a federal judge in Washington, D.C., has been weighing whether challengers can block the $100,000 policy, signaling that courts may see this as a major test of presidential power in immigration. (Reuters)

Bottom line: the outcome will matter far beyond politics. It could shape how U.S. employers hire global talent—and how far the executive branch can go without Congress.

Vocabulary

Petition (noun) – an official request submitted to an authority.
Example: The employer filed a petition to hire a specialized worker through the H‑1B program.
Coalition (noun) – a group that works together for a shared goal.
Example: A coalition of states joined the lawsuit to challenge the new fee.
Authorize (verb) – to officially approve or give permission.
Example: The states argue Congress did not authorize a $100,000 H‑1B fee.
Administrative costs (noun) – the expenses of running a process or system.
Example: Immigration fees are typically tied to administrative costs, not revenue raising.
Rulemaking (noun) – the formal process of creating regulations.
Example: The lawsuit claims the government skipped proper rulemaking steps.
Barrier (noun) – something that blocks progress or access.
Example: A $100,000 price tag becomes a barrier for many employers.
Absorb (verb) – to handle a cost without major harm.
Example: Big companies might absorb the fee, but smaller employers may not.
Shortage (noun) – a situation where there is not enough of something.
Example: Hospitals worry the fee could worsen staffing shortages.
Challenge (noun) – a legal action questioning a decision or rule.
Example: The states filed a challenge in federal court.
Executive authority (noun) – power held by the president and executive agencies.
Example: The case tests the limits of executive authority over immigration policy.

Discussion Questions (About the Article)

Why are states suing over the Trump H‑1B visa application fee?
What legal arguments do the states make about who can set immigration fees?
Why might a $100,000 fee affect universities and hospitals differently than big tech firms?
What does the government say the fee is supposed to accomplish?
What kinds of court decisions could come next, and why do they matter?

Discussion Questions (About the Topic)

Should immigration programs prioritize protecting local wages or filling skills gaps—or both?
If a visa program is abused, what’s a fair way to fix it without breaking legitimate hiring?
How much power should presidents have to change immigration rules without Congress?
Do high fees “solve” a problem—or just push it into the shadows?
How would your industry change if it suddenly couldn’t hire international talent?

Related Idiom / Phrase

“Price someone out of the market” – to make something so expensive that people can’t afford it.

Example: A $100,000 fee could price universities and hospitals out of the H‑1B market.

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