More than 20 US states have moved to block the Trump administration’s new $100,000 fee on H-1B visas, warning that the unprecedented cost would severely disrupt schools, hospitals, and other essential public services while cutting off a critical pipeline of skilled foreign talent.

The multistate legal push, filed on Tuesday, takes the form of an amicus brief supporting plaintiffs in Global Nurse Force, et al. v. Trump, urging the US District Court for the Northern District of California to issue a preliminary injunction halting the policy. The states argue that the fee is unlawful, economically damaging, and contrary to the public interest.

The challenge carries particular significance for Indian professionals, who account for a dominant share of H-1B visa holders and play a vital role across US healthcare, education, research, and technology sectors. State officials warn that public institutions—especially government-run and nonprofit employers—cannot absorb a $100,000 per-employee cost.

California Attorney General Rob Bonta said the fee would impose “unnecessary and unlawful financial burdens” on public employers and leave critical positions unfilled.

“My office has challenged this fee in court, and today we are supporting a related challenge,” Bonta said in a statement. “We won’t stop fighting to protect our world-class universities, schools, and hospitals, which depend on attracting skilled talent from around the world.”

The Trump administration imposed the fee on September 19, 2025, applying it to new H-1B petitions filed after September 21. Implemented through Department of Homeland Security guidance, the policy gives the DHS secretary broad discretion to determine which petitions are subject to the fee or exempt—a provision states say invites arbitrary or selective enforcement.

H-1B visas allow US employers to hire highly skilled foreign nationals in specialty occupations requiring at least a bachelor’s degree, including physicians, nurses, researchers, and educators. While most private-sector visas are capped at 65,000 annually, with an additional 20,000 for advanced degree holders, many public-sector and nonprofit employers are exempt to ensure critical public services remain staffed.

States argue the $100,000 fee would effectively shut public employers out of the programme altogether.

The brief highlights the country’s growing teacher shortage, noting that 74 per cent of US school districts reported difficulty filling open positions during the 2024–2025 academic year. Educators represent the third-largest occupational group among H-1B holders, with nearly 30,000 teachers and professors working on the visas.

Because schools and universities typically operate on tight public budgets, states warn the fee would lead to larger class sizes, reduced course offerings, and programme cuts.

Hospitals would face similar challenges. The brief notes that H-1B physicians and nurses are critical in underserved communities, particularly in rural and low-income areas. Nearly 23,000 H-1B physicians have worked in medically underserved regions nationwide, even as the US faces a projected shortage of 86,000 doctors by 2036.

States caution that higher costs could result in longer wait times, increased medical errors, and even hospital closures.

Beyond staffing concerns, the brief underscores the broader economic impact, noting that H-1B workers and their families contribute an estimated $86 billion annually to the US economy.

Attorneys general from more than 20 states and jurisdictions joined the filing, reflecting broad opposition to the policy.

For Indian professionals, who form the backbone of the H-1B workforce, the outcome of the case could significantly shape access to US public-sector jobs in healthcare, education, and research in the years ahead.