On Sept. 19, 2025, President Trump issued a Presidential Proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers” (the “Proclamation”). The Proclamation requires employers to pay a $100,000 fee with any new H-1B petition for foreign workers outside the United States, effective Sept. 21, 2025. The stated purpose is to address perceived misuse of the H-1B program and protect the domestic labor market.
On Oct. 3, 2025, a coalition of immigration advocacy organizations and affected employers filed a lawsuit in federal court in the U.S District Court for the Northern District of California challenging the legality of the Proclamation. The plaintiffs include healthcare staffing companies, unions, academic associations, religious organizations, and individual workers.
The lawsuit contends that the $100,000 fee is unauthorized by statute, was implemented without required procedures, and will cause significant harm to U.S. employers, workers, and the public interest. The lawsuit alleges:
- The Proclamation exceeds presidential authority under the Immigration and Nationality Act (INA). Plaintiffs assert that INA §§ 212(f) and 215(a) do not authorize the President to impose such a fee.
- The $100,000 fee was imposed without notice-and-comment rulemaking, violating the Administrative Procedures Act and the Regulatory Flexibility Act.
- The $100,000 fee is arbitrary and capricious, untethered from the actual costs of adjudicating H-1B petitions.
The complaint also details how the fee has “sparked chaos,” caused confusion, forced workers to return to the U.S. abruptly, and led employers to halt or cancel recruitment and hiring of foreign talent. Plaintiffs argue that the fee will worsen shortages in healthcare, education, and religious services, and disrupt ongoing research and innovation.
Plaintiffs seek declaratory and injunctive relief to prevent the fee from taking effect, requesting that the court:
- Declare sections of the Proclamation and related agency policies unlawful and set them aside.
- Enjoin enforcement of the $100,000 fee requirement as to H-1B petition adjudications, visa issuance, and admission.
- Order agencies to process H-1B petitions under existing law, without the new fee.
