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2d ago

20 States Sue to Block Trump’s $100,000 H-1B Fee as Companies Rethink Hiring

Plaintiffs argue the proclamation exceeds fee-setting authority, threatening staffing for colleges, schools and hospitals.

Rep. Beth Van Duyne (R-TX) speaks to the press at the U.S. Capitol on January 14, 2025 in Washington, DC.
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Overview

  • A coalition of 20 Democratic-led states filed suit in federal court, marking at least the third challenge to the proclamation after cases by unions, industry groups and the U.S. Chamber of Commerce.
  • The $100,000 charge applies only to new H-1B petitions processed at consulates, with DHS guidance excluding in-country changes of status or extensions and instructing employers to pay via a Treasury website.
  • Analyses show outsourcers such as TCS, Infosys and Cognizant are most exposed, with 82%–93% of recent hires consular-processed and more than $1 billion in hypothetical charges for Infosys over four years.
  • Employers are already adjusting, with attorneys and researchers reporting reduced registrations, increased offshoring and a projected 30%–50% drop in next year’s lottery entries cited from a legal tech firm.
  • The administration has expanded screening measures including broader social-media vetting and proposed new ESTA data and photo requirements, drawing support from Vice President J.D. Vance and opposition from state attorneys general.