Full Breakdown
Virginia Attorney General Leads 22-State Coalition Against Proposed $100,000 H-1B Visa Tax
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Proposed $100,000 Tax on H-1B Petitions
US Citizenship and Immigration Services (USCIS) is scheduled to issue a notice of proposed rulemaking on August 25, 2026 that would impose a tax of $103,265 on petitions for H-1B visas filed by non-cap-exempt employers. The rule would give employers only a 30-day window to comment and does not provide an alternative, less-burdensome option.
Legal and Practical Concerns Raised by the Coalition
Attorney General Jay Jones and the coalition of state attorneys general contend that the rule exceeds USCIS’s authority under the Immigration and Nationality Act, which does not empower the agency to levy a tax without congressional approval. They also argue that the proposal violates the Administrative Procedure Act because it fails to justify the substantial burden on states and does not consider less harmful alternatives.
The H-1B program is a primary tool for state and local governments to recruit teachers, physicians, nurses, and other highly skilled workers who are not U.S. residents.
Coalition of 22 State Attorneys General
The comment letter was signed by attorneys general from the following jurisdictions: California, Massachusetts, Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Washington, Wisconsin, and Virginia. The coalition urges USCIS to withdraw the proposed rule.
Official Statement from Attorney General Jay Jones
In the comment letter, Attorney General Jones emphasized the human impact of the proposal:
> “Individuals in this class are more than just names on papers – they are our teachers, doctors, nurses, caretakers, and more. They are our neighbors and friends and family. They have filled out every form and met every government demand to come here and be part of the American Dream,” — Jay Jones, Attorney General of Virginia
Timeline
- August 25, 2026 (scheduled): USCIS to issue the notice of proposed rulemaking imposing the $103,265 tax.
- September 25, 2026 (occurred): Virginia’s Office of the Attorney General publishes the coalition’s comment letter.
Data & Statistics
- Tax amount: $103,265 per H-1B petition for non-cap-exempt employers.
- Public comment period: 30 days, unusually short for a rule of this magnitude.
- Coalition size: 22 state attorneys general signed the comment letter.
The coalition’s opposition underscores a broader debate over the scope of executive authority in immigration policy and the practical need for H-1B workers to fill critical shortages across the United States.