A coalition of 19 state attorneys general, spearheaded by Oregon Attorney General Dan Rayfield, has initiated a lawsuit against the Trump administration. The legal action contests a new policy that imposes a hefty $100,000 fee on new H-1B visa applications. The coalition argues that this fee is both unlawful and detrimental to employers who are grappling with significant labor shortages.
In a statement released by the Oregon Department of Justice, Attorney General Rayfield emphasized that the fee would create an overwhelming financial obstacle for employers, particularly those in the public sector and government institutions seeking to recruit highly skilled foreign professionals such as physicians, researchers, nurses, and educators. “Oregon”s colleges, universities, and research institutions rely on skilled international workers to keep labs running, courses on track, and innovation moving forward,” Rayfield stated. He further added that the exorbitant fee would hinder these institutions” ability to employ the experts they require and exceeds the intent of Congress.
The lawsuit claims that the policy, introduced by the US Department of Homeland Security (DHS), contravenes federal law by imposing a fee not sanctioned by Congress. It also accuses the administration of bypassing necessary regulatory procedures and overstepping its executive authority under the Administrative Procedure Act (APA). The coalition raised alarms regarding the broad discretion given to the Secretary of Homeland Security, which could lead to selective enforcement of the fee.
According to a proclamation by President Donald Trump issued on September 19, the new $100,000 fee applies solely to individuals or entities submitting new H-1B petitions or entering the H-1B lottery after September 21. Current visa holders and petitions filed before this date will not be affected. This new requirement also includes a $100,000 fee for every new H-1B visa petition submitted for the upcoming 2026 lottery.
The lawsuit explicitly challenges the proclamation made by the Trump administration. The H-1B visa program allows US employers to temporarily hire highly skilled foreign workers for specialty occupations that necessitate at least a bachelor”s degree. Congress has set a cap of 65,000 H-1B visas for most private-sector employers annually, with an additional 20,000 reserved for individuals possessing a master”s degree or higher.
Attorneys general involved in the lawsuit argue that this new fee is substantially higher than the usual H-1B filing costs, which generally range from $960 to $7,595. They contend that the fee is not aligned with the actual costs of processing petitions, as mandated by law. Furthermore, they assert that the administration did not follow the required notice-and-comment process before enforcing this policy.
The release underscores the potential repercussions on higher education, noting that Oregon State University currently sponsors over 150 H-1B faculty, researchers, and staff, while the University of Oregon sponsors more than 50. Both institutions heavily depend on this program to fill essential roles, and the increased fee threatens to leave critical positions vacant, jeopardizing their educational, research, and public service missions.
Joining Attorney General Rayfield in this lawsuit are his counterparts from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, North Carolina, New Jersey, New York, Rhode Island, Vermont, Washington, and Wisconsin.
