International

US States Challenge H-1B Visa Fee Hike in Court

A group of 20 US states has filed a lawsuit against the Donald Trump administration over a steep increase in H-1B visa fees, arguing that the move will hurt American businesses and undermine the country’s ability to attract skilled foreign talent. The states have described the fee hike as excessive and unlawful, saying it goes beyond the federal government’s authority.

Details of the Visa Fee Increase

Under the revised rules, the cost of filing an H-1B visa petition has been raised by up to USD 100,000 for certain employers, particularly those heavily dependent on foreign skilled workers. State governments opposing the decision argue that the sharp increase amounts to a punitive measure rather than a reasonable administrative fee, making it difficult for companies to hire global talent.

Arguments Raised by the States

The states contend that the higher fees will disproportionately affect technology firms, research institutions, universities and healthcare providers that rely on skilled professionals. They have warned that the policy could discourage innovation, delay critical projects and push employers to move operations outside the United States. The lawsuit also claims the fee hike was introduced without adequate justification or proper consultation.

Federal Government’s Position

The Trump administration has defended the decision by stating that higher visa fees are intended to protect domestic workers and ensure that US companies prioritise local hiring. Officials have argued that the measures align with broader efforts to reform immigration policy and reduce dependence on foreign labour.

Broader Impact on Skilled Immigration

The legal challenge has renewed debate around the future of skilled immigration in the United States. Business groups and several state leaders have said access to global talent is essential for economic growth, warning that restrictive policies could weaken America’s competitiveness in key sectors.

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