19 states sue Trump admin over $100,000 H‑1B visa fee
What's the story
Nineteen US states have sued the Trump administration over a proposed $100,000 fee on new H-1B visa applications. The lawsuit was filed in the US District Court for the District of Massachusetts on Friday. California and Massachusetts are leading the case against what they call an "unlawful" charge that could hinder employers who rely on skilled foreign workers.
Legal argument
States argue fee exceeds congressional authority
The states contend that the new fee imposes a financial burden on employers, especially in public sectors like education and healthcare. They also argue that the administration set this amount without proper justification, exceeding its authority granted by Congress. California Attorney General Rob Bonta emphasized that no presidential administration can rewrite immigration law to impose such a surcharge.
Administration's stance
White House defends fee as part of H-1B reform
The White House has defended the $100,000 fee, saying it is a legal move and part of broader reforms to the H-1B program. Spokeswoman Taylor Rogers said the fee discourages companies from abusing the system and helps protect American wages while providing certainty to employers needing overseas talent. The H-1B program is crucial for US companies hiring foreign professionals for specialized roles, especially in tech sectors.
Service disruption
Lawsuit claims fee could disrupt essential services
The lawsuit, which includes states like Arizona, Colorado, Connecticut and Delaware among others, argues that the fee could disrupt essential services in public institutions. New York Attorney General Letitia James said it would hurt state operations by making it harder for residents to access healthcare and education. The case marks the first challenge by US states against the new charge after previous lawsuits from other entities.
Approval decline
New H-1B approvals for Indian IT firms plummet
Meanwhile, new H-1B approvals for top Indian IT services firms have dropped drastically. In FY 2025, only 4,573 new petitions were approved for these companies—a steep decline of 70% from 2015 and 37% lower than FY2024. This comes as US technology firms now dominate initial H-1B approvals for the first time ever. Amazon leads with over 14,000 approved petitions in FY 2025.
Renewal reliance
Indian IT firms rely on renewals amid declining approvals
Indian IT firms are now relying more on continuing-employment H-1B petitions as new approvals decline. TCS is the only Indian firm in the top five for such petitions with a 7% denial rate. Other firms like Infosys and Wipro have lower denial rates between 1%-2%. The changes in policy and demand have made employers rethink their visa strategies due to increased costs and stricter definitions.