Vermont Business Magazine Attorney General Charity Clark today joined a coalition of 19 states in suing the Trump Administration over its unlawful policy imposing a $100,000 fee on new H-1B visa petitions. H-1B visas allow U.S. employers to hire highly skilled foreign national workers in roles that require specialized skills, including as physicians, researchers, nurses, and other vital workers, to alleviate nationwide labor shortages. The new fee would create a costly barrier for employers, especially public sector and government employers, trying to fill these positions. In Vermont, public and private employers rely on the services of hundreds of H-1B visa-holders to fill critical roles in research, health care, education, and technology that would otherwise go unfulfilled.
In the lawsuit, Attorney General Clark and the coalition allege that the policy, which has been implemented by the Department of Homeland Security (DHS), is a clear violation of the law because it imposes a massive fee outside of the bounds of what is authorized by Congress and contrary to Congress’s intent in establishing the H-1B program, bypasses required rulemaking procedures, and exceeds the authority granted to the executive branch under the Administrative Procedure Act (APA).
“Vermont has an aging population, and we need health care workers and other skilled professionals to fill many of our job openings,” said Attorney General Clark. “While Vermont is focused on recruiting talented professionals and welcoming new neighbors, President Trump is exacerbating the problems with unlawful and exorbitant fees.”
The H-1B visa program allows employers to petition for high-skilled foreign workers to temporarily fill positions in specialty occupations that require at least a bachelor’s degree. Congress limits the number of H-1B visas available each year for most private employers, with the current cap set at 65,000, with an exemption of 20,000 for individuals with a master’s degree or higher.
Since its inception, the H-1B visa program has been continually tailored by Congress to carry out its purpose of meeting employers’ labor needs, while protecting the interests of American workers to ensure that they are not wrongfully displaced. Congress has repeatedly enhanced enforcement, increased penalties, and legislated on fees for H-1B petitions to prevent misuse of the program. Congress has also adapted the program to ensure that it is especially beneficial to many government and non-profit organizations in fulfilling their public service missions, exempting them from the 65,000-person cap.
On September 19, 2025, President Trump issued a proclamation ordering an unprecedented $100,000 fee for new H-1B visa petitions, undermining the very purpose of the H-1B visa by making it harder to address severe labor shortages in critical fields such as education and health care, and ultimately worsening the staffing crisis. As implemented by DHS through a series of written documents, the policy affects any application filed after September 21, 2025, and grants the Secretary of Homeland Security broad discretion to determine which petitions are subject to the fee or for an exemption, raising concerns that the enforcement could be applied selectively against employers disfavored by the Trump Administration.
The $100,000 visa fee is devastating for all states, including Vermont, and threatens the quality and availability of education, health care, and other core services. For example, the United States faces a nationwide teacher shortage and in the 2024-2025 school year, 74% of school districts in the U.S. reported having trouble filling open positions, particularly in special education, physical sciences, ESL or bilingual education, and foreign languages. Educators are the third-largest occupation for H-1B visa holders, with nearly 30,000 educators on the visas, and nearly a thousand colleges and universities employ hundreds of H-1B personnel to support their research and education missions. Because K-12 schools, colleges, and universities are generally government or non-profit entities, they are incapable of absorbing an additional $100,000 for each H-1B hire.
Hospitals and other health care centers also rely on the H-1B visa program to hire physicians, surgeons, and nurses, often in low-income and rural communities. Nearly 17,000 H-1B visas went to workers in medicine and health occupations in the 2024 fiscal year, and half of those were physicians and surgeons. Without foreign-trained physicians, the United States is projecting a shortfall of 86,000 physicians by 2036. There will not be enough doctors to care for older adults, many of whom suffer increased rates of chronic disease and have other complex medical needs.
Attorney General Clark is joined by the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, North Carolina, New Jersey, New York, Oregon, Rhode Island, Washington, and Wisconsin in filing the lawsuit.
A copy of the lawsuit will be made available later today on our website.
Today’s lawsuit is the 37th case Attorney General Clark has brought against the Trump administration since President Trump took office in January. For more information on actions taken by the Attorney General on behalf of Vermonters, visit our website at ago.vermont.gov/ago-actions.
12.12.2025. MONTPELIER, Vt. – Attorney General
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