States Prepare to Sue Donald Trump Over Controversial $100,000 H-1B Visa Fee Proposal

 

In a rapidly escalating showdown over immigration policy, multiple U.S. states are preparing coordinated litigation against former President Donald Trump in response to his proposal to impose a $100,000 application fee on H-1B visas. The plan—unveiled as part of his revamped immigration platform—has triggered alarm across the tech sector, university research communities, and global workforce advocates who say the fee would function as a “de facto ban” on skilled foreign workers.

A Shockwave Through the Innovation Economy

The H-1B visa program has long been a central pipeline for STEM talent, particularly in artificial intelligence, biomedical research, cybersecurity, and advanced manufacturing. Trump’s proposed six-figure fee sent a shockwave through industries that depend on international expertise, prompting warnings that the U.S. could lose high-skill workers to nations such as Canada, Germany, Australia, and Singapore—countries currently expanding their skilled-worker pathways.

Executives across the technology sector have characterized the fee as “economic self-sabotage,” arguing that such a monumental cost would essentially eliminate small startups, university labs, and regional employers from competing for global specialists.

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State Attorneys General Call the Policy “Punitive and Unconstitutional”

Attorneys general from more than a dozen states—led by California, New York, Massachusetts, Washington, and Illinois—are preparing lawsuits asserting that the proposal violates numerous legal protections governing federal rulemaking.

Legal teams are expected to argue that:

1. The fee is “arbitrary, confiscatory, and designed to suppress lawful immigration rather than manage administrative costs.”
2. The proposal violates the Administrative Procedure Act due to the magnitude of the change.
3. The fee functions as a discriminatory barrier targeting noncitizens without legitimate regulatory justification.
4. States would face measurable economic harm, from diminished research output to weakened startup ecosystems.

One state official described the proposal as “economically deranged and constitutionally thin.”

Universities Sound the Alarm

Academic institutions warn that the fee would decimate international research collaboration. Many universities rely on H-1B visas to hire postdoctoral researchers, medical professionals, and faculty specializing in rare or emerging fields.

A senior university administrator summarized the sentiment:

“No research department on Earth has a spare $100,000 per applicant. This isn’t a fee—it’s an eviction notice for global scholarship.”

Trump Allies Defend the Proposal

Trump’s supporters argue that the fee is intended to “reshape the labor market,” insisting that companies should hire American workers first. They frame the six-figure cost as a deterrent to long-term dependency on foreign labor, despite economists noting that many H-1B roles have chronic domestic shortages.

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Economic Models Predict Severe Workforce Contraction

Independent labor analysts say the proposal would cause:

1. A dramatic reduction in H-1B demand—possibly 90% or more.
2. A surge of talent migration to competitor nations.
3. A slowdown in U.S. patent filings, tech entrepreneurship, and scientific output.
4. Increased labor shortages in healthcare, engineering, and research organizations.

One researcher noted that the plan would create a “talent drought with multi-decade consequences.”

States Ready for a Multi-Front Legal Battle

The emerging coalition of states is preparing both emergency injunction motions and long-term constitutional challenges. Officials expect a court fight that could reach the Supreme Court, particularly given the financial stakes, labor implications, and political sensitivities surrounding high-skill immigration.

A Defining Fight Over America’s Future Workforce

The confrontation reveals a deeper struggle over what kind of country the U.S. intends to be in the global talent race. For states reliant on innovation, Trump’s proposal represents a direct threat to economic competitiveness.

• For immigration hardliners, it’s a long-sought mechanism to reshape the workforce.
• For the courts, it may become a pivotal test of executive power over immigration policy.

Regardless of where the litigation lands, one reality is unmistakable: America’s economic future may hinge on the outcome.