US States hail court win against H-1B fee

State attorneys general across the United States welcomed a federal court ruling striking down the Trump administration’s $100,000 fee on new H-1B visa petitions, calling it a victory for employers, universities, healthcare providers and research institutions that rely on highly skilled foreign workers.

A day earlier, US District Court in Massachusetts issued a final ruling vacating the fee, which had been imposed on all new H-1B petitions filed after September 21, 2025. A multistate coalition had challenged the policy, arguing that the administration lacked congressional authorisation to impose the charge.

Washington Attorney General Nick Brown said the ruling would help protect the state's ability to attract specialised talent.

“This win helps keep our state at the forefront of highly specialized research that drives our world’s most dynamic industries,” Brown said.

“Unchecked, this illegal tax would have massively increased costs for Washington state agencies, public universities, and public colleges,” he added.

Brown's office said nearly 500 H-1B visa holders are employed across more than 30 Washington state agencies, public universities and colleges. Officials argued that the fee would have made it difficult for educational institutions to fill critical positions, particularly in artificial intelligence, cybersecurity and medical fields.

California Attorney General Rob Bonta, whose office led the multistate challenge, said the court had delivered a decisive rejection of the policy.

“The judgment is in! The Trump Administration’s unlawful and costly $100,000 tax has been struck down. This tax was an attack on America’s ability to attract and retain the high-skilled talent that strengthens our economy and helps us meet critical workforce needs,” Bonta said.

“California remains open for business, open to talent, and committed to ensuring our communities have essential services — from healthcare to education — that depend on a strong, skilled workforce,” he added.

Connecticut Attorney General William Tong also praised the ruling, describing the fee as an unfair burden on employers.

“We just stopped Donald Trump’s crude attempt to hawk the American Dream to the highest bidder. Trump’s outrageous fees were a steep burden for Connecticut employers across the public and private sector who rely on skilled H-1B workers for difficult, vital positions,” Tong said.

“We sued, we won, and we’re going to keep fighting to protect a fair and lawful immigration process,” he added.

State officials argued that the fee created a costly barrier for employers seeking workers in specialised occupations, including teachers, physicians, researchers and nurses. They said the policy risked worsening labour shortages and disrupting essential public services.

According to the coalition, employers had previously paid between $960 and $7,595 in regulatory and statutory fees for H-1B visas before the $100,000 charge was introduced.

The states also highlighted the economic contribution of H-1B workers and their families, citing estimates that they contribute $86 billion annually to the US economy, pay $35 billion in federal and payroll taxes, and another $11 billion in state and local taxes.