US States Launch Legal ‘War’ Over $100,000 Visa Fee Hike

By Kai December 19, 2025
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The battle for global talent has moved from the boardroom to the courtroom. A coalition of 20 US states, led by California’s Attorney General Rob Bonta, has filed a federal lawsuit to block a staggering $100,000 fee for H-1B visas. This marks the third major legal challenge against a policy that has sent shockwaves through the international education and tech sectors.

The fee, introduced via a presidential proclamation in September 2025, represents a twenty-fold increase from the previous costs, which typically ranged between $2,000 and $5,000. While the White House argues the levy is a necessary “incremental step” to protect American jobs and stop “spamming” of the visa system, critics see it as an extortionate barrier that bypasses the democratic process.

The lawsuit, filed in a Boston federal court, alleges that the administration ignored mandatory rulemaking procedures. Attorney General Bonta was blunt in his assessment, stating that the government cannot simply “raise costs on a whim.” The concern is not just for Silicon Valley giants but for the vital public services that keep the country running.

From rural hospitals struggling to find doctors to universities seeking world-class researchers, the financial burden of a $100,000 “entry fee” is seen as a death knell for diversity and innovation. For many public institutions, the cost is simply unaffordable, threatening to leave laboratories empty and lecture theatres without specialists.

The policy has already begun to reshape the landscape. While the administration clarified that international students already in the US are exempt, the “offshore” hiring of fresh talent has hit a brick wall. Analysts suggest that if the fee holds, firms may accelerate offshoring to India or Canada rather than hiring in the US.

As the courts weigh up whether a president can unilaterally “tax” the path to residency, the real-world impact is already being felt. For the thousands of professionals and the institutions that rely on them, this isn’t just a matter of immigration policy; it is a question of whether the US remains the premier destination for the world’s brightest minds or becomes a gated community too expensive to join.

Source: THE PIE NEWS

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