United States: Third Court Challenge to $100,000 H-1B Fee Is Filed
December 15, 2025
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At a glance
- Twenty U.S. states have filed a federal lawsuit against the September 19 Presidential Proclamation and related federal agency policies that impose a $100,000 fee on certain H-1B petitions.
- The Plaintiff States seek a declaratory judgment that federal agency policies implementing the proclamation are unlawful, and ask the court to set aside and enjoin the policies.
- The lawsuit is the third court challenge to the H-1B proclamation and fee policy.
The issue
Twenty U.S. states have filed suit challenging the September 19 Presidential Proclamation and related federal agency policies that impose a $100,000 fee on U.S. employers for certain H-1B nonimmigrant petitions. The case, State of California, et al. v Kristi Noem, et al., 1:25-cv-13829 (D. Mass., filed December 12, 2025), is the third challenge filed against the proclamation and fee.
The plaintiff U.S. states in the lawsuit are: Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin. The U.S. government agency defendants are the Department of Homeland Security, State Department, Department of Labor, and Department of Justice.
A closer look
The September 19 proclamation, as implemented, prohibits the approval of H-1B petitions filed after September 20, 2025 if the petition is filed for, or only approvable for, consular notification, unless their employer has paid a $100,000 fee for each subject employee, the employer has been granted a national interest exception to the entry restrictions, or the employee is otherwise not subject to the fee.
The new lawsuit alleges that U.S. government policies implementing the proclamation violate the Administrative Procedure Act (APA) for lack of notice and comment rulemaking; exceed APA authority by assessing immigration fees that bear no connection to any costs borne by the collecting agency; and are arbitrary and capricious in their manner of implementation. The suit also alleges that the $100,000 fee policy violates the constitutional doctrine of separation of powers.
The suit follows two earlier lawsuits – one brought by the U.S. Chamber of Commerce in October, Chamber of Commerce v. DHS, Case No. 1:25-cv-03675 (D.D.C., filed October 16, 2025), and an earlier case, Global Nurse Force v. Trump, Case No. 3:25-cv-08454 (N.D. Ca., filed October 3, 2025) – both of which challenge the proclamation on similar, though not identical, grounds. Plaintiffs in the U.S. Chamber of Commerce lawsuit are seeking a preliminary injunction that would temporarily bar U.S. Citizenship and Immigration Services from imposing the $100,000 fee while the legality of the proclamation and related policies are litigated. A district court hearing on the preliminary injunction in U.S. Chamber of Commerce will be held on December 19, 2025.
What’s next
Employers and foreign nationals should stay on top of developments in the lawsuits because court orders, government guidance, or both could mean new instructions with little notice. Fragomen is closely following the litigation and other matters related to the proclamation.
This alert is for informational purposes only. If you have any questions, please contact the immigration professional with whom you work at Fragomen.
