California and States Sue to Block $100,000 H1B Fee

California filed suit on December 13, 2025 in federal court in Rhode Island, seeking to enjoin a rule that imposes a $100,000 fee on new H1B visa petitions. The complaint, brought on behalf of a multistate coalition of Democratic attorneys general, asserts that the administration exceeded its authority and adopted the fee without lawful basis. The rule represents a leap from typical employer H1B costs of roughly two thousand to five thousand dollars to one hundred thousand dollars per petition.

State filings and press accounts identify a core group of 20 states joining California in the challenge. That roster includes Massachusetts, New Jersey, Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, Nevada, North Carolina, New York, Oregon, Rhode Island, Vermont, Washington and Wisconsin. Participation reporting has varied across outlets, but California is consistently described as the principal filer. New Jersey Attorney General Matthew J. Platkin is listed among the signatories and California Attorney General Rob Bonta announced the filing as part of his office’s broader litigation campaign against federal policies.

Plaintiffs frame the fee as an unlawful barrier that will significantly raise employer costs and impede hiring of highly skilled foreign nationals who fill critical roles in health care, education and research. Attorneys general emphasize that H1B visas allow U.S. employers to recruit physicians, researchers, nurses, teachers and other specialized workers. They also note that certain nonprofit employers are exempt from the statutory H1B cap because of their public service missions, and contend that the fee will undermine those organizations’ ability to recruit staff for underserved communities.

The public health implications are immediate and concrete. Many hospitals and clinics, particularly in rural and low income urban areas, rely on H1B sponsored staff to maintain specialty services and emergency coverage. Increasing the cost of a single petition to one hundred thousand dollars risks deterring hospitals from hiring foreign trained specialists and could accelerate closures of services already stretched thin. In education, schools that rely on international teachers to fill subject area shortages could face the same pressure, widening disparities in districts that struggle to recruit domestically.

Beyond operational impacts, the lawsuit raises broader questions about how immigration policy is being used to shape labor markets and who bears the cost of staffing essential public services. Plaintiffs argue that the fee is not only procedurally flawed, it is substantively at odds with statutory limits on executive authority and with longstanding congressional intent governing the H1B program. The complaint seeks judicial relief to block the fee while litigation proceeds.

Reporting has differed on the precise number and identity of participating jurisdictions and on which states serve as co leads, reflecting variations in state announcements and related filings. What is clear is that the challenge adds to a string of legal confrontations between state attorneys general and the federal government, and that its outcome could affect hiring decisions at hospitals, schools and research institutions nationwide.

As the case moves through federal court, health systems and school districts will be watching closely because the result will determine whether employers must absorb a sudden and substantial new cost or whether the rule will be paused pending a judicial ruling. The litigation underscores how decisions about visa fees can ripple far beyond immigration law, shaping access to care and education for vulnerable communities.