• Insights

United States: Third Court Challenge to $100,000 H-1B Fee Is Filed

December 15, 2025

insight-news-default

Country / Territory

  • United StatesUnited States

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

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.

Country / Territory

  • United StatesUnited States

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Blog post

Malta Citizenship by Merit and Vision 2050: Who May Qualify and What Contributions Matter?

Director Isobel Neilson and Manager Sophie Jo Wasson examine how Malta’s Citizenship by Merit framework considers exceptional achievement and contribution alongside the country’s long-term priorities under Vision 2050, and what applicants should consider when developing a credible case.

Learn more

Media mentions

People Management: UK Right to Work Check Changes: What Businesses Need to Know

Partner Naomi Goldshtein discusses how new UK right to work requirements extend beyond direct employees and the steps businesses should take to understand and manage workforce compliance.

Learn more

Blog post

The Dutch-American Friendship Treaty at 70: How “Friendly” is it in Practice?

Partners Aviva Meerschwam and Christine Sullivan, Senior Associate Tuğba Özyakup and Junior Immigration Consultant Gabriela Gonzalez examine how the Dutch-American Friendship Treaty operates in the Netherlands and the US, and what the differences mean for entrepreneurs, investors and businesses pursuing transatlantic growth.

Learn more

Awards

Fragomen Named a Top 10 Finalist for the 2026 Cartus Masters Cup

Fragomen is a Top 10 finalist for the 2026 Cartus Masters Cup, Cartus’ highest supplier honor recognizing exceptional service, collaboration, innovation and commitment to clients and relocating employees.

Learn more

Media mentions

SHRM: Proposed $103,265 H-1B Is Changing Talent Acquisition Strategy

Partner Bo Cooper discusses the proposed $103,265 H-1B fee, potential legal challenges and its broader implications for employers and high-skilled immigration.

Learn more

Media mentions

Business Insider: The Hidden Sacrifices of Chasing an H-1B Career in America

Partner Aaron Blumberg discusses how proposed changes to the H-1B program could affect workers facing layoffs and families navigating dependent visa status.

Learn more

Blog post

Permanent Residence in Germany: Why Eligible Foreign Nationals Should Consider Applying Early

Senior Associate Arta Djahanschiri outlines the principal pathways to permanent residence in Germany, the flexibility and security the status can provide and why eligible foreign nationals should consider applying early.

Learn more

Blog post

Proposed Changes to Naturalisation by Residency in Ireland: What Does it Mean for Employers and Global Mobility Programmes?

Immigration Manager Jo Crawford examines proposed changes to Ireland’s naturalisation requirements and what they could mean for employers and global mobility programmes, including talent retention, workforce planning and business mobility. 

Learn more

Fragomen news

Comment on DHS Proposed $103,265 Fee on Cap-Subject H-1B Petitions.Learn more

Awards

Fragomen Receives Three 2026 Cartus Awards

Fragomen received three recognitions at the 2026 Cartus Global Network Conference for excellence in service, sustainability leadership and global citizenship.

Learn more

Blog post

Net Migration Policy: An Explainer Comparing Australia, Canada and the UK

Partner Jack (Eui Chul) Kim, Senior Counsel Dr. Anna Boucher, UK Government Affairs Strategy Director Shuyeb Muquit and Articling Student David Mucz examine how Australia, Canada and the UK measure net migration. They compare efforts to reduce migration with the need to maintain access to international talent, and explain the potential effects on employers, labor markets and economic growth.

Learn more

Media mentions

Bloomberg Law: White House H-1B Order Puts Employer Layoffs Under Microscope

Partner K. Edward Raleigh discusses how US employers should consider displacement and conduct a risk analysis when assessing H-1B filings in light of recent policy changes.

Learn more

Blog post

Malta Citizenship by Merit and Vision 2050: Who May Qualify and What Contributions Matter?

Director Isobel Neilson and Manager Sophie Jo Wasson examine how Malta’s Citizenship by Merit framework considers exceptional achievement and contribution alongside the country’s long-term priorities under Vision 2050, and what applicants should consider when developing a credible case.

Learn more

Media mentions

People Management: UK Right to Work Check Changes: What Businesses Need to Know

Partner Naomi Goldshtein discusses how new UK right to work requirements extend beyond direct employees and the steps businesses should take to understand and manage workforce compliance.

Learn more

Blog post

The Dutch-American Friendship Treaty at 70: How “Friendly” is it in Practice?

Partners Aviva Meerschwam and Christine Sullivan, Senior Associate Tuğba Özyakup and Junior Immigration Consultant Gabriela Gonzalez examine how the Dutch-American Friendship Treaty operates in the Netherlands and the US, and what the differences mean for entrepreneurs, investors and businesses pursuing transatlantic growth.

Learn more

Awards

Fragomen Named a Top 10 Finalist for the 2026 Cartus Masters Cup

Fragomen is a Top 10 finalist for the 2026 Cartus Masters Cup, Cartus’ highest supplier honor recognizing exceptional service, collaboration, innovation and commitment to clients and relocating employees.

Learn more

Media mentions

SHRM: Proposed $103,265 H-1B Is Changing Talent Acquisition Strategy

Partner Bo Cooper discusses the proposed $103,265 H-1B fee, potential legal challenges and its broader implications for employers and high-skilled immigration.

Learn more

Media mentions

Business Insider: The Hidden Sacrifices of Chasing an H-1B Career in America

Partner Aaron Blumberg discusses how proposed changes to the H-1B program could affect workers facing layoffs and families navigating dependent visa status.

Learn more

Blog post

Permanent Residence in Germany: Why Eligible Foreign Nationals Should Consider Applying Early

Senior Associate Arta Djahanschiri outlines the principal pathways to permanent residence in Germany, the flexibility and security the status can provide and why eligible foreign nationals should consider applying early.

Learn more

Blog post

Proposed Changes to Naturalisation by Residency in Ireland: What Does it Mean for Employers and Global Mobility Programmes?

Immigration Manager Jo Crawford examines proposed changes to Ireland’s naturalisation requirements and what they could mean for employers and global mobility programmes, including talent retention, workforce planning and business mobility. 

Learn more

Fragomen news

Comment on DHS Proposed $103,265 Fee on Cap-Subject H-1B Petitions.Learn more

Awards

Fragomen Receives Three 2026 Cartus Awards

Fragomen received three recognitions at the 2026 Cartus Global Network Conference for excellence in service, sustainability leadership and global citizenship.

Learn more

Blog post

Net Migration Policy: An Explainer Comparing Australia, Canada and the UK

Partner Jack (Eui Chul) Kim, Senior Counsel Dr. Anna Boucher, UK Government Affairs Strategy Director Shuyeb Muquit and Articling Student David Mucz examine how Australia, Canada and the UK measure net migration. They compare efforts to reduce migration with the need to maintain access to international talent, and explain the potential effects on employers, labor markets and economic growth.

Learn more

Media mentions

Bloomberg Law: White House H-1B Order Puts Employer Layoffs Under Microscope

Partner K. Edward Raleigh discusses how US employers should consider displacement and conduct a risk analysis when assessing H-1B filings in light of recent policy changes.

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
October 1, 2026 | JapanJapan: Stricter Permanent Residence Requirements
October 2, 2026 | United KingdomUnited Kingdom: Draft Code on Expanded Right to Work Scheme Clarifies Employer Obligations
October 2, 2026 | United KingdomUnited Kingdom: Expanded RTW Scheme in Effect; Further Employer Guidance Published
October 2, 2026 | United StatesUnited States: September 2026 DOL PERM and PWD Processing Times
October 2, 2026 | United StatesUnited States: U.S. Consular Services in Brazil Suspended
October 1, 2026 | JapanJapan: Stricter Permanent Residence Requirements
October 2, 2026 | United KingdomUnited Kingdom: Draft Code on Expanded Right to Work Scheme Clarifies Employer Obligations
October 2, 2026 | United KingdomUnited Kingdom: Expanded RTW Scheme in Effect; Further Employer Guidance Published
October 2, 2026 | United StatesUnited States: September 2026 DOL PERM and PWD Processing Times
October 2, 2026 | United StatesUnited States: U.S. Consular Services in Brazil Suspended
October 1, 2026 | JapanJapan: Stricter Permanent Residence Requirements
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.