California Attorney General Rob Bonta led a coalition of 22 state attorneys general in opposing a Trump administration proposal to impose a $103,265 tax on most H-1B visa petitions, arguing the fee would undermine states' ability to hire foreign workers for critical shortages in fields like education and healthcare.
H-1B visas allow state and local governments to employ foreign workers to address nationwide shortages of critical service providers including teachers, physicians, and nurses. On August 25, 2026, the U.S. Department of Homeland Security's Citizenship and Immigration Services issued a notice of proposed rulemaking imposing the tax on non-cap-exempt employers, according to Bonta's office.
In their comment letter, Bonta and the coalition argue that the proposed rule would exceed USCIS's legal authority under the Immigration and Nationality Act, constitute a tax that requires congressional authorization USCIS has not received, and violate the Administrative Procedure Act by failing to adequately justify the burdens or consider less harmful alternatives. The coalition also objected to the 30-day public comment period.
The proposal marks a second attempt by the Trump administration to impose such a tax. On September 19, 2025, President Trump issued a proclamation ordering a $100,000 tax on new H-1B petitions. Bonta led a multistate coalition that filed a lawsuit challenging that tax, and in June 2026 a federal court ruling held it unconstitutional and struck it down.