Oregon Attorney General Dan Rayfield led 18 Democratic state attorneys general in a lawsuit challenging the Trump administration’s new $100,000 fee for initial H‑1B visa applications. The states argue the fee far exceeds the actual cost of processing petitions and exceeds the fee‑setting authority granted by Congress. A prior coalition of universities, unions and health providers has already sued over the fee, and lawmakers remain divided over H‑1B policy and corporate hiring practices. The dispute could have major implications for employers, academic institutions and high‑skilled immigration policy.
18 Democratic Attorneys General Sue Over $100,000 H‑1B Fee, Saying It Will Block Employers and Universities
Oregon Attorney General Dan Rayfield (D) on Friday led a coalition of 18 Democratic state attorneys general in filing a lawsuit challenging the Trump administration’s new $100,000 fee for initial H‑1B visa applications. The states say the dramatic increase exceeds statutory fee‑setting authority and would effectively bar many U.S. employers and academic institutions from hiring highly skilled foreign nationals needed to address labor shortages.
“Oregon’s colleges, universities and research institutions rely on skilled international workers to keep labs running, courses on track and innovation moving forward,” Rayfield said in a Friday press release. “This enormous fee would make it nearly impossible for these institutions to hire the experts they need, and it goes far beyond what Congress ever intended. This threatens Oregon’s ability to compete, educate, and grow.”
The complaint joins Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Rhode Island, Vermont, Washington and Wisconsin as plaintiffs.
Legal Argument and Cost Concerns
The attorneys general point out that typical regulatory and statutory costs for an initial H‑1B petition range from about $960 to $7,595, and they say the administration’s $100,000 fee far exceeds the actual cost of processing petitions. The states argue the administration is overstepping Congress’s fee‑setting authority, which requires fees to be tied to agency costs rather than imposed arbitrarily.
Prior Litigation and Reactions
A separate coalition of religious organizations, health care providers, unions and higher education professionals sued the administration in October over the same H‑1B fee. Todd Wolfson, president of the American Association of University Professors, warned the fee would discourage top international scholars and researchers, saying it sends the message: “You’re not welcome here. Go elsewhere.”
Lawmakers have offered mixed reactions. Sen. Ruben Gallego (D‑Ariz.) wrote to the administration noting that major technology firms have laid off large numbers of workers while hiring more than 30,000 foreign employees under the H‑1B program, raising questions about training and opportunities for recent U.S. graduates.
Rep. Marjorie Taylor Greene (R‑Ga.) has proposed legislation to aggressively phase out the H‑1B program and remove pathways to permanent residency, arguing the visa should remain strictly temporary.
Administration Response
President Trump has defended the importance of specialized foreign workers for the U.S. economy, saying the country lacks sufficient “talented people.” He also unveiled a new investor visa concept dubbed the “Trump Gold Card,” which he described at a White House roundtable as similar to a green card but offering “better privileges and a stronger path to citizenship.”
The lawsuit signals a likely prolonged legal battle over the scope of federal fee‑setting authority and the future of U.S. high‑skilled immigration policy, with implications for universities, health care providers and the tech sector.
