CLIENT UPDATE: PRESIDENTIAL PROCLAMATION ON $100,000 H-1B VISA ENTRY FEE PROMPTS NATIONWIDE LEGAL CHALLENGE
WHAT HAPPENED
A coalition of employers, labor unions, healthcare organizations, academic institutions, religious groups, and individual workers has filed a federal lawsuit challenging a new $100,000 fee on H-1B visa petitions. The policy, introduced by a September 19 presidential proclamation, imposes the fee on employers seeking to bring foreign workers into the United States under the H-1B program.
The plaintiffs argue that this sudden and steep fee is unlawful, disruptive to essential U.S. industries, and was implemented without following required procedures.
BACKGROUND ON THE FEE
- The proclamation restricts the entry of H-1B specialty occupation workers by requiring a $100,000 payment for each new petition filed after September 21, 2025.
- The policy applies to workers who are outside of the United States at the time of filing.
- Employers are not allowed to submit petitions for overseas workers unless the fee is paid.
- The proclamation was issued with fewer than 36 hours of advance notice.
KEY ALLEGATIONS IN THE LAWSUIT
- The fee violates the Administrative Procedure Act because it was implemented without public notice or comment.
- The fee is arbitrary, capricious, and unconstitutional.
- The measure unfairly burdens hospitals, schools, religious organizations, and small businesses that rely on skilled foreign workers.
- Plaintiffs argue it creates a “pay-to-play” immigration system that undermines the integrity of the H-1B program.
- Some employers and workers had to abandon urgent travel or staffing plans to avoid being barred from reentry.
- The president does not have legal authority to unilaterally impose this type of fee or bypass Congress.
RELIEF REQUESTED
The plaintiffs are seeking:
- A court order to block enforcement of the $100,000 fee.
- A return to the standard statutory structure of the H-1B program.
- Declaratory and injunctive relief to stop future presidential overreach related to visa fees.
IMPACT ON EMPLOYERS AND FOREIGN WORKERS
- The lawsuit has created widespread concern across industries dependent on high-skilled labor.
- It may delay or disrupt hiring plans involving foreign talent.
- Employers are being advised to proceed cautiously with travel and filings until the court rules on the fee’s legality.
- Uncertainty remains about how the government will handle already approved H-1B petitions for individuals outside the United States who travel after the effective date.
WHAT CLIENTS SHOULD DO NOW
- If you plan to file a new H-1B petition or have questions about travel or reentry after September 21, 2025, consult your immigration attorney before proceeding.
- Employers should evaluate whether national interest or critical industry exemptions may apply.
- We recommend holding off on filing petitions subject to the fee, if possible, until further guidance or court rulings are available.
- Maintain documentation of business necessity and recruitment efforts to support exemption arguments if needed.
SUMMARY
- A $100,000 entry fee on new H-1B visa petitions has been challenged in federal court.
- The lawsuit aims to block what many view as a rushed and unlawful policy that could severely harm U.S. businesses and institutions.
- Until the matter is resolved, employers should proceed with caution, especially when filing petitions for individuals currently outside the U.S.
