A coalition of 22 US attorneys general has formally opposed the Trump administration's proposal to impose a fee exceeding $100,000 on certain H-1B visa petitions, arguing the measure is unlawful and would deepen shortages of teachers, doctors, and nurses across American states. The challenge carries significant consequences for Indian professionals and US companies that depend heavily on the H-1B programme to secure highly skilled workers.

The Proposed Rule and What It Would Cost

US Citizenship and Immigration Services (USCIS) issued its notice of proposed rulemaking on 25 August, seeking to impose a charge of $103,265 on H-1B petitions filed by employers that fall outside the annual visa cap exemption. The 30-day public comment window was itself criticised by the coalition as unusually short and insufficiently justified for a rule of this magnitude.

The attorneys general characterised the proposed charge as a tax — and argued that the executive branch cannot levy such a tax without explicit authorisation from Congress. They further contended the rule would exceed USCIS's authority under the Immigration and Nationality Act and violate the Administrative Procedure Act.

Who Is Leading the Legal Challenge

Virginia Attorney General Jay Jones was among those who joined the coalition in filing a formal comment letter demanding that USCIS withdraw the proposed rule. Jones accused the administration of overreaching its executive authority with little regard for the communities that rely on H-1B professionals.

'Individuals in this class are more than just names on papers — they are our teachers, doctors, nurses, caretakers, and more. They are our neighbors and friends and family,' Jones said. He added that these individuals 'have filled out every form and met every government demand to come here and be part of the American Dream.'

Jones was pointed in his criticism of the administration: 'Donald Trump is trying to close the door by pushing the boundaries of executive power, indifferent to the burden this proposed rule will put on Virginians,' he said, vowing to use 'every legal tool' to block the proposal.

Which States Have Joined the Coalition

Beyond Virginia, the coalition includes the attorneys general of California, Massachusetts, Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, and Minnesota. Also joining are Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Washington, Wisconsin, and the District of Columbia — spanning both Democratic-leaning coastal states and several battleground territories.

Why the H-1B Fee Would Hit States Hard

The coalition warned that the proposed charge would make it significantly harder for state and local institutions to recruit skilled foreign professionals, citing acute shortages in primary and secondary education, healthcare, and other essential public services. The attorneys general also said USCIS had failed to justify the burden the charge would impose on states and had not adequately considered less damaging alternatives.

Notably, the coalition flagged that a previous administration attempt to impose a similar charge had already been struck down by a court — arguing the new proposal repeats the same constitutional flaw of treating an administrative fee as a de facto tax.

What the H-1B Programme Does

The H-1B programme allows US employers to hire foreign nationals in specialty occupations that typically require specialised knowledge and at least a bachelor's degree. While technology companies are among its largest users, hospitals, schools, universities, and research institutions also rely on H-1B workers — making the proposed fee a broad-based concern well beyond the tech sector. Indian nationals have historically been the largest beneficiaries of the programme.

With the comment period now closed, the next step lies with USCIS — and potentially the courts — as the coalition has signalled it will pursue all available legal avenues to block the rule from taking effect.