Maryland Attorney General Joins Coalition to Fight H-1B Visa Tax

Maryland Attorney General Anthony G. Brown has joined a coalition of 22 other attorneys general in a unified effort to oppose a proposed rule by the Trump administration that aims to impose a significant tax on H-1B visas. This proposed rule, if enacted, would levy a tax of $103,265 on employers subject to the H-1B visa cap. The coalition contends H-1B visas are a critical mechanism for state and local governments to address shortages in essential service sectors, such as education and healthcare, by enabling the hiring of highly skilled international professionals when domestic candidates are unavailable. The attorneys general contend that this proposed tax is unlawful, would hinder states’ ability to serve their residents, and exceeds the administration’s legal authority.

The attorneys general argue that the proposed rule, issued by the U.S. Department of Homeland Security’s Citizenship and Immigration Services (USCIS) on August 25, 2026, represents an attempt to impose a tax that has already been challenged and struck down. Their formal comment letter urges USCIS to withdraw this new proposal. The coalition asserts that the tax would have detrimental effects on states’ capacity to fill critical staffing needs in vital areas like primary and secondary education, as well as healthcare. Furthermore, they maintain that USCIS lacks the statutory authority to implement such a tax, as this power is reserved for Congress. The proposed rule is also criticized for exceeding USCIS’s legal authority under the Immigration and Nationality Act and for violating the Administrative Procedure Act due to insufficient justification for the proposed burdens and a failure to consider less harmful alternatives. Adding to their concerns, the attorneys general point out the unusually short 30-day public comment period, which they argue is inadequate and lacks proper justification.

The comment letter, spearheaded by Attorney General Brown and joined by his counterparts from California, Massachusetts, Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawaiʻi, Illinois, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Virginia, Washington, and Wisconsin, emphasizes the damaging impact this proposed tax would have on public services. By making it prohibitively expensive to hire skilled foreign workers, states would struggle to address critical shortages of teachers, physicians, and nurses, directly affecting the well-being of their residents. The coalition’s legal arguments center on the principle that imposing a tax requires explicit authorization from Congress, which USCIS has not obtained. Moreover, they contend that the rulemaking process itself was flawed, as USCIS failed to adequately explain the necessity of the tax or explore alternative solutions that would impose less of a burden on states and employers. The limited timeframe for public feedback also raises concerns about transparency and the opportunity for meaningful public input.

This legal challenge highlights a significant disagreement over the executive branch’s authority to implement fiscal policies that directly impact state operations and the provision of essential services. The attorneys general are advocating for a process that respects legislative authority and ensures sufficient time for public deliberation on rules with such far-reaching consequences. The opposition to the proposed H-1B visa tax underscores the commitment of these state officials to protecting their states’ abilities to recruit and retain the skilled professionals necessary to support their communities.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office.

Video Spotlight