Trump administration sued by 19 States over $100,000 H-1B fee

The Trump administration has been sued by 19 US states over its decision to impose a hefty $100,000 fee on new H-1B visa petitions. Describing the hike in H-1B visa fee as “unlawful”, the states warned that the move will aggravate labour shortages in key sectors like health care, education and technology.

‘Massive hike without legal authority’

The lawsuit was filed on Friday (December 13) by New York Attorney General Letitia James, along with 18 other attorneys general in the US District Court for the District of Massachusetts, challenging what they termed a "massive" increase in H-1B fees without legal authority or due process.

Also Read: US pollster sparks row after calling on American firms to 'de-Indianise' workforce

The H-1B visa programme allows highly skilled foreign professionals to work temporarily in the US and is widely used by Indian nationals.

The states argued that the hiked H-1B visa fee would make the programme effectively inaccessible for government and non-profit employers that depend on H-1B workers to provide essential services in health care, education, technology, and other fields.

‘Unlawful increase’

"H-1B visas allow talented doctors, nurses, teachers, and other workers to serve communities in need across our country. The administration's illegal attempt to ruin this programme will make it harder for New Yorkers to get health care, disrupt our children's education, and hurt our economy. I will keep fighting to stop this chaos and cruelty targeting immigrant communities,” James said in a statement.

Also Read: US social media vetting 'delays' H-1B visa interviews in India

Describing the H-B visa fee hike as a "sudden" and “massive" increase over existing charges, the attorneys general contended that the imposition of the new fee is "unlawful" and the move violates the Administrative Procedure Act as well as the Immigration and Nationality Act, as it was imposed without congressional approval or the required rule-making process.

Joining James in the lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, North Carolina, New Jersey, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.

Difficulty in hiring through H-1B

The coalition of states argued that the newly imposed fee on H-1B visas would sharply curtail their ability to hire workers through the programme to tackle labour shortages, warning that the move would disrupt access to education, health care and other essential services.

Also Read: Trump administration orders enhanced vetting for H-1B visa applicants

In its filing, the coalition said the impact would be particularly severe for rural and underserved communities, which are already struggling with declining workforces. In New York, immigrants account for more than a third of the health care workforce, while public universities and hospitals depend heavily on professionals employed on H-1B visas, the lawsuit noted.

The situation is especially acute in rural parts of the state. New York’s 16 rural counties have just four primary care physicians for every 10,000 residents, and hospitals are facing a nursing shortage projected to reach 40,000 by 2030. Reducing the number of H-1B visa holders would “only exacerbate” these gaps, the coalition said.

Shortage of 86,000 physicians by 2036

Nationally, the American Medical Association has estimated a shortage of 86,000 physicians by 2036, a shortfall the lawsuit said H-1B workers will be “critical” in filling. At least 930 colleges and universities across the US employ staff on H-1B visas, including more than 600 at the State University of New York.

Also Read: US economist flags ‘H-1B fraud’, says Chennai got 2.5 times the national visa cap

California Attorney General Rob Bonta said the USD 100,000 fee creates “unnecessary” and “illegal” financial burdens on public employers. “The Trump administration thinks it can raise costs on a whim, but the law says otherwise,” he said.

(With agency inputs)