New York Attorney General Letitia James and a coalition of 19 other state attorneys general have won a major legal challenge against the Trump administration’s controversial $100,000 fee on new H-1B visa applications, after a federal judge ruled the policy unlawful.
The decision, issued by the U.S. District Court in Massachusetts, strikes down a fee that had been imposed in September 2025 and represented a dramatic increase from the several-thousand-dollar charges traditionally associated with the H-1B visa program. The court found that the administration lacked the authority to impose what amounted to a tax without approval from Congress.
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The H-1B program allows U.S. employers to hire highly skilled foreign workers in specialty occupations, including healthcare, education, technology, finance and engineering. Attorney General James argued that the fee would have worsened labor shortages and harmed critical sectors that depend heavily on immigrant professionals.
“Every day, thousands of people with H-1B visas serve New Yorkers as doctors, teachers, and other skilled workers,” James said following the ruling. She described the court’s decision as a victory for immigrant workers and the industries that rely on their expertise.
According to the Attorney General’s Office, more than 13,000 H-1B visa holders work across New York State, while the State University of New York employs hundreds of workers through the program. State officials argued that restricting access to these workers would have placed additional strain on healthcare systems, educational institutions and other key industries.
The lawsuit was filed in December 2025 by New York and 19 other states, which contended that the fee was an unlawful attempt to discourage legal immigration. In its ruling, the court vacated the policy nationwide, preventing federal agencies from enforcing the fee.
The Trump administration is expected to appeal the decision, but for now the ruling restores the traditional H-1B application fee structure and removes a significant financial barrier for employers seeking skilled foreign workers.
