A coalition of employers and entities that depend on H-1B visa talent filed a lawsuit on Oct. 3 to challenge President Donald Trump’s recent proclamation, which imposes a new $ 100,000 fee on every new H-1B application.
The proclamation of a new $100,000 fee for United States employers sponsoring H-1B visas took effect on Sept. 21 for prospective H-1B petitions filed after that date. The USCIS published further guidance on Oct. 20 regarding how the fee will apply to new petitions and not to current valid H-1B visas.
The coalition argues that the sudden financial burden on H-1B applicants disrupts stability for employers and foreign workers, with far-reaching implications for healthcare, education, and the economy. The suit was filed in the U.S. District Court for the Northern District of California on Oct. 3, 2025.
The group represents labor unions, healthcare providers, educational institutions, and religious organizations that rely on skilled professionals who come to the U.S. through the H-1B program to fulfill necessary roles in their fields. Organizations include the Global Nurse Force, the Global Village Academy Collaborative, and the International Union, as well as individual workers from the U.S. and abroad.
The petitioners are represented by Democracy Forward, Justice Action Center, South Asian American Justice Collaborative (SAAJCO), Kuck Baxter LLC, Joseph & Hall, P.C., and IMMpact Litigation.
What does the lawsuit against the $100K H-1B visa lawsuit seek?
The claimants seek to block the new fee requirement immediately, among other remedies.
The Trump administration argues that the charge is necessary to curb the employer abuse of the program while still allowing skilled workers to be hired. They have also listed wage suppression, increased foreign labor, job losses to U.S. workers, and national security threats as the main concerns behind the decision.
However, the suit claimants argue that skilled H-1B workers contribute significantly to the U.S. economy by creating jobs and fostering innovation. By making it more difficult for skilled professionals to enter the country, they argue that the fee could drive companies to move operations abroad, thereby harming U.S. job growth.
“Trump’s restrictions on H-1B visa applications will lead to less lifesaving research, reduced innovation, and diminished competitiveness, said Todd Wolfson, president of the American Association of University Professors in a press release.
The claimants argue that the new charge is unconstitutional and violates the Administrative Procedure Act. They assert that Trump cannot unilaterally change the program’s legal framework or impose new fees through executive action.
“President Trump cannot impose a six-figure immigration ransom by fiat. This exorbitant fee invites corruption and is unlawful, destabilizing, and bad for everyone,” said Skye Perryman, President and CEO of Democracy Forward, to the media.
Additionally, they express concern that the proclamation lacks a clear standard for determining “national interest,” which could lead to arbitrary decisions about who can afford the fees.
Separately, the U.S. Department of Homeland Security (DHS) is proposing to modify the H-1B visa program’s random lottery selection system to one based on wage and talent.
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