CLIENT UPDATE: FEDERAL LAWSUIT CHALLENGES $100,000 H-1B VISA FEE AS UNLAWFUL AND DISRUPTIVE
WHAT’S HAPPENING
A coalition of healthcare organizations, labor unions, academic institutions, religious groups, and individual workers has filed a major lawsuit against the federal government. The lawsuit challenges the sudden introduction of a $100,000 entry fee for H-1B visa petitions. This fee was introduced through a presidential proclamation issued by President Trump on September 19, 2025, and began applying to new H-1B visa filings just days later, on September 21.
The plaintiffs argue that this policy is unlawful, lacks proper notice and justification, and seriously disrupts essential workforce pipelines in sectors like healthcare, education, and research.
KEY BACKGROUND
- The H-1B visa program allows U.S. employers to hire skilled foreign workers for specialty occupations such as nursing, engineering, and computer science.
- On September 19, 2025, President Trump issued a proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers.” It imposes a $100,000 fee on new H-1B petitions, to be paid by sponsoring employers.
- The policy was announced with less than 36 hours’ notice and became effective immediately for new filings.
- The fee is being enforced by USCIS, the Department of State, and Customs and Border Protection.
LEGAL CHALLENGE
- The plaintiffs argue that the administration’s actions violated the Administrative Procedure Act because the rule was enacted without public notice or comment.
- They also claim that the policy exceeds presidential authority under the Immigration and Nationality Act and is unconstitutional.
- The lawsuit emphasizes that the sudden fee change has forced employers and workers to scramble. Some have canceled travel and job plans to avoid being barred from reentry.
- Plaintiffs say the policy harms underserved communities by limiting access to foreign-trained doctors, nurses, educators, and religious leaders.
MAIN ALLEGATIONS
- The fee creates a pay-to-play system that undercuts the fairness and integrity of the H-1B visa process.
- It disproportionately harms small businesses, schools, hospitals, and nonprofits that rely on foreign talent.
- It creates chaos by introducing sudden and extreme financial burdens on employers without sufficient time to prepare.
- The president does not have authority to override Congress’s well-established structure for H-1B visas or to impose new fees at will.
WHAT PLAINTIFFS WANT
- The lawsuit seeks declaratory and injunctive relief to stop the $100,000 fee from being enforced.
- Plaintiffs want to restore the original statutory structure of the H-1B visa program and block any further implementation of the fee.
WHAT THIS MEANS FOR CLIENTS
If your company sponsors H-1B workers or plans to file H-1B petitions soon, this lawsuit could directly affect your responsibilities and costs. For now, the fee remains in effect, but if the court agrees with the plaintiffs, the government may be forced to withdraw or revise the policy.
Employers should:
- Monitor the progress of the lawsuit closely.
- Prepare for the possibility that the fee may be rolled back or modified.
- Evaluate how this fee impacts budgeting and talent acquisition strategies.
- Speak with legal counsel before submitting new H-1B filings to ensure compliance with the latest rules.
