Legal Challenge Filed Over $100,000 H-1B Fee: What Employers Need to Know

The first major lawsuit has been filed challenging President Trump’s recent Presidential Proclamation requiring a $100,000 fee for new H-1B petitions. This legal action represents the beginning of what could become a significant test of executive authority in the immigration arena.

On September 19, 2025, President Trump issued a Proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers.” The order requires U.S. employers to pay a $100,000 fee with any new H-1B petition for foreign workers outside the United States, effective September 21, 2025.

The stated intent of the measure is to protect American workers by discouraging overuse of the H-1B program. However, the policy has already created widespread uncertainty for employers, particularly in healthcare, research, and technology sectors that rely on global talent.

The Lawsuit

A coalition of immigration advocacy groups, employers, and professional associations has now filed suit in the U.S. District Court for the Northern District of California, seeking to block enforcement of the Proclamation.

The lawsuit argues that:

  • The Proclamation exceeds presidential authority under the Immigration and Nationality Act (INA).
  • It was implemented without proper rulemaking or public comment, violating the Administrative Procedure Act (APA).
  • The $100,000 fee is arbitrary and not supported by evidence, as it far exceeds the cost of petition processing.

Plaintiffs contend that the new rule has already caused irreparable harm, including rescinded job offers, workforce disruptions, and delayed hiring for key roles.

Relief Sought

The plaintiffs are asking the court to:

  • Stop enforcement of the $100,000 payment requirement.
  • Declare the Proclamation invalid.
  • Require agencies to continue adjudicating H-1B petitions under existing law.

What This Means for Employers

This challenge may be the first of several legal actions seeking to halt or modify the Proclamation. Until the courts issue a decision, the policy technically remains in effect, though its future is uncertain.

Employers should continue preparing filings carefully, maintaining evidence of payment where applicable, and documenting how these changes affect hiring or project timelines.

NPZ Law Group’s Guidance

NPZ Law Group is closely following this litigation and any resulting agency responses. Our attorneys are advising clients on compliance strategies and preparing for possible outcomes depending on how the court rules.

For background and ongoing coverage, visit:

Contact NPZ Law Group

If you or your organization have questions about how the new H-1B rules or the pending lawsuit may affect your immigration planning, please contact NPZ Law Group at info@visaserve.com or call 201-670-0006.

Contact Information

If you or your family members have any questions about how immigration and nationality laws in the United States may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by calling us at 201-670-0006 extension 104. We also invite you to visit our website at www.visaserve.com for more information