Strong opposition is emerging against the Trump administration’s proposal to impose a $100,000 (about Rs 95 lakh) fee on certain categories of H-1B visa petitions in the US. Attorneys general from 22 US states have come together, arguing that the decision is illegal and would further worsen the existing shortage of teachers, doctors, and nurses in the country. They have officially written a letter to the US Citizenship and Immigration Services (USCIS) in this regard.
USCIS issued the draft of this new rule on August 25 this year. As per the draft, companies filing petitions that are not exempt from the annual H-1B visa cap would have to pay a fee of as much as $103,265. However, the attorneys general have described this massive amount not as a fee but as a kind of tax.
They made clear that the government does not have the authority to impose such a tax merely through administrative action without the approval of the US Congress. Along with key states such as California, New York, New Jersey, and Texas, a total of 22 states are part of this opposing coalition.
Through the H-1B visa program, American companies hire foreign specialists with specialized skills. These visas are particularly crucial for Indian IT professionals. Concerns have been raised that if this new proposal is implemented, it would become a huge burden on American companies that depend on foreigners for skilled employees, especially government institutions facing staff shortages in the education and medical sectors.
This is not the first time such an attempt has been made. A $100,000 fee imposed through a presidential order in 2025 was struck down as illegal by a federal judge in June 2026, on the grounds that it lacked Congressional approval. Recalling this background, the attorneys general are demanding that the current proposal also be withdrawn.
The public comment period on this proposal is currently underway. Even before a final decision is announced, states and other stakeholders are strongly voicing their objections.