Janet Yu-Ting files lawsuit with 18 states against federal government to challenge $10,000 fee for H-1B visas.

On December 12, New York State Attorney General Letitia James announced that she, along with 18 other state attorneys general, filed a lawsuit against the federal government to halt the imposition of illegal fees on the H-1B visa program. They argued that these fees violate the Immigration and Nationality Act and the Administrative Procedure Act, posing threats to education, healthcare, and other essential services.

According to James’ office, New York State is home to over 13,000 H-1B visa holders who work in fields such as technology, finance, and the arts.

In September of this year, the federal government unexpectedly announced a fee of $100,000 for all new H-1B applications, a significant increase from the previous fees that were only a few thousand dollars.

The office of Letitia James highlighted the crucial role that H-1B visa holders play in communities across the United States, working as teachers, nurses, doctors, researchers, engineers, and more. The new fee could potentially disrupt the program entirely and prevent government and non-profit employers who rely on H-1B visa holders from accessing the program.

“H-1B visas allow talented doctors, nurses, teachers, and other professionals to serve communities in need across our nation,” James stated in a press release. “The government’s attempt to unlawfully dismantle this program will make it more difficult for New Yorkers to access healthcare, disrupt our children’s education, and harm our economy. I will continue to fight against this chaotic and cruel targeting of immigrant communities.”

Since the 1950s, the United States has had a visa program that allows skilled workers to reside temporarily in the country and work in their professional fields. The current H-1B visa program was created in the 1990s, allowing employers to sponsor foreign workers for up to 6 years in “specialty occupations.”

H-1B visa holders are employed in various sectors in both the public and private spheres, filling critical workforce shortages in industries such as healthcare, education, and other high-skilled fields.

The attorneys general argue that the government’s new fees on H-1B visas will severely restrict states’ abilities to hire new workers through the program to address labor shortages, disrupting pathways for people to access essential services. This labor shortage is particularly destructive for rural and underdeveloped communities already facing labor declines.

For example, in New York State’s 16 rural counties, there are currently only 4 primary care physicians per 10,000 people. New York’s hospitals are facing a severe shortage of nurses, with an estimated shortfall of 40,000 nurses by 2030.

Reducing the number of H-1B visa holders will only exacerbate this shortage, as more than a third of New York’s healthcare workers are immigrants. Nationally, the American Medical Association estimates a shortage of 86,000 doctors by 2036, highlighting the critical role of H-1B visa holders in filling that gap.

Moreover, at least 930 universities across the United States employ H-1B visa holders as teachers or researchers, with over half being public four-year institutions and more than 10% being medical schools.

In New York State, the State University of New York (SUNY) employs 693 H-1B visa holders, many of whom serve students in rural and suburban areas of the state.

James believes that restricting the issuance of H-1B visas will disrupt critical research at top universities. Other vital industries in New York, such as technology, finance, and the arts, also rely on H-1B visa holders to fill key positions.

In a lawsuit filed in the Massachusetts federal district court, multiple state attorneys general argue that imposing these new fees is unlawful, violating the Immigration and Nationality Act and the Administrative Procedure Act.

The fees for H-1B visas must be established through the appropriate legislative process by Congress or the Department of Homeland Security (DHS). In this case, neither of these processes were followed. The government imposed the $100,000 fee without prior notice to the public or soliciting feedback from affected groups.

The lawsuit seeks a court order declaring the government’s actions illegal and halting the implementation of the $100,000 fee policy.