Nineteen state attorneys general, led by Oregon Attorney General Dan Rayfield, have filed suit against the Trump administration challenging a presidential proclamation that imposes a USD 100,000 fee on new H-1B visa petitions. The coalition says the fee is unlawful, exceeds federal authority, and will harm employers already facing critical labor shortages.
Rayfield said the charge creates an overwhelming financial obstacle for institutions—especially public-sector and government employers—attempting to hire highly skilled foreign workers such as physicians, researchers, nurses and educators. He warned that Oregon’s colleges, universities and research centers depend on international talent to maintain research programs, classroom instruction and innovation, and that the steep charge would make recruiting those experts nearly impossible.
The lawsuit argues the Department of Homeland Security lacked statutory authority to impose such a large fee, failed to follow the Administrative Procedure Act’s notice-and-comment rulemaking requirements, and granted the Homeland Security secretary overly broad discretion to determine which petitions are subject to the levy, raising concerns about arbitrary or selective enforcement.
According to a presidential proclamation issued on September 19, the USD 100,000 fee applies to new H-1B petitions filed or entering the H-1B lottery after September 21. Existing H-1B visa holders and petitions submitted before that cutoff are not affected. The proclamation requires the fee to accompany every new H-1B petition filed after the deadline, including those submitted for the 2026 lottery; the lawsuit directly contests this proclamation.
Under the H-1B visa program, U.S. employers may temporarily hire foreign workers in specialty occupations typically requiring at least a bachelor’s degree. Most private-sector H-1B visas are subject to an annual cap of 65,000, with an additional 20,000 visas reserved for applicants who hold a U.S. master’s degree or higher.
The attorneys general say the USD 100,000 amount far surpasses ordinary H-1B filing costs — usually between about USD 960 and USD 7,595 — and is not tied to the actual cost of processing petitions as federal law requires. They also contend the administration did not adequately consider the policy’s broader impacts on state, local and nonprofit employers.
The complaint highlights the possible effects on higher education: Oregon State University sponsors more than 150 H-1B faculty, researchers and staff, while the University of Oregon sponsors over 50. The suit says these and similar vacancies could undermine teaching, research and public-service missions.
Joining Oregon in the litigation are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Rhode Island, Vermont, Washington and Wisconsin.
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