20 US States warn Trump’s $100K H-1B fee threatens schools, hospitals

Washington: More than 20 US states on Tuesday moved to block the Trump administration’s new $100,000 fee on H-1B visas, warning that the measure would disrupt schools and hospitals nationwide and choke off a key pipeline of skilled foreign talent.

The legal challenge carries particular significance for Indian professionals, who account for a dominant share of H-1B visa holders and play a critical role across US healthcare, education, research and technology sectors, especially in public institutions that states say cannot absorb the steep new cost.

The multistate amicus brief supporting plaintiffs in Global Nurse Force, et al. v. Trump, urged the US District Court for the Northern District of California to issue a preliminary injunction blocking the policy. The brief argues the fee is unlawful and contrary to the public interest, as it would worsen labour shortages, weaken the economy and disrupt essential public services.

“The Trump Administration’s $100,000 visa fee imposes unnecessary and unlawful financial burdens on public employers and will leave essential positions in critical sectors unfilled,” asserted California Attorney General Rob Bonta.

“My office has challenged this fee in court, and today, we’re supporting a related challenge. We won’t stop fighting to protect our world-class universities, schools, and hospitals, which thrive by attracting and retaining skilled talent from around the world,” he said in a statement.

The Trump administration imposed the unprecedented fee on September 19, 2025, applying it to new H-1B petitions filed after September 21. Implemented through a series of Department of Homeland Security documents, the policy grants the DHS secretary broad discretion to decide which petitions are subject to the fee or exempt, a provision that states say raises concerns about selective enforcement.

H-1B visas allow US employers to hire highly skilled foreign nationals in speciality occupations requiring at least a bachelor’s degree, including physicians, researchers, nurses and educators. While Congress caps most private-sector H-1B visas at 65,000 annually, with an additional 20,000 for advanced degree holders, many government and nonprofit research institutions are exempt to ensure they can meet public service needs.

In their plea, the states argue the $100,000 fee would effectively shut public employers out of the programme.

The United States faces a nationwide teacher shortage, with 74 per cent of school districts reporting difficulty filling open positions in the 2024–2025 school year, particularly in special education, physical sciences, bilingual education and foreign languages, they argued.

Educators are the third-largest occupational group among H-1B holders, with nearly 30,000 working on the visas, and close to a thousand colleges and universities relying on H-1B personnel to support teaching and research.

Because K–12 schools, colleges and universities are typically government or nonprofit entities, the brief says they are incapable of absorbing an additional $100,000 per hire. States warn this would result in larger class sizes, reduced course offerings and cuts to programmes, undermining the quality of education and directly affecting students.

Hospitals and healthcare systems would face similar consequences. The brief notes that hospitals rely on H-1B visas to recruit physicians, surgeons and nurses, often in low-income and working-class communities. About 11.4 million Californians—roughly one quarter of the state’s population—live in areas with primary care shortages. Nationwide, nearly 23,000 H-1B physicians have worked in underserved communities over the years.

The United States is projected to face a shortfall of 86,000 physicians by 2036, as the population ages and demand for care rises. States warn that a $100,000 fee would make it financially impossible for many hospitals to hire new H-1B healthcare workers, forcing facilities to operate with inadequate staffing. The brief cautions this could lead to longer wait times, increased errors, higher mortality rates and even hospital closures.

“At a time when many hospitals are already facing cuts in health insurance subsidies and reduced Medicaid payments, a $100,000 fee for H-1B healthcare workers is simply not feasible,” the states argue.

Beyond staffing shortages, the brief highlights the broader economic impact of the programme, noting that H-1B workers and their dependents contribute an estimated $86 billion annually to the US economy and pay billions of dollars in federal, state and local taxes.

In filing the amicus brief, Bonta was joined by the attorneys general of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawai‘i, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington and Wisconsin.

The court challenge comes amid a broader Trump administration push to tighten legal immigration pathways. For Indian professionals, who make up a substantial share of new H-1B applicants, the outcome of the case could shape access to US public-sector jobs in healthcare, education, and research for years to come.

IANS