Lawsuit Challenges Trump’s $100,000 H-1B Fee: What Employers Need to Know

On September 19, 2025, the White House issued a proclamation that ties H-1B entry to a $100,000 payment from the sponsoring employer. The rule took effect on September 21, and many employers, universities, and hospitals are reassessing hiring plans while details remain unclear. A broad coalition has filed suit in the Northern District of California to block the requirement. Teams need a clear read on what changed, who is challenging it, and what steps to take now.
This article discusses the proclamation, the lawsuit, key dates, and immediate steps for employers.

‍H-1B $100K Fee Hike News

On September 19, 2025, the White House issued “Restriction on Entry of Certain Nonimmigrant Workers.” It limits H-1B entry unless the sponsoring employer makes a $100,000 payment. The order takes effect 12:01 a.m. EDT on September 21, 2025, runs for 12 months unless extended, and allows national-interest exceptions at DHS discretion. The text also directs State and DHS to verify payment during processing and calls for separate wage and selection rulemakings.

Who filed the case and where

On October 3, 2025, a coalition led by Global Nurse Force sued in the U.S. District Court for the Northern District of California, Case No. 3:25-cv-08454, assigned to Judge Joseph C. Spero. Plaintiffs include labor groups, educators, healthcare and faith organizations. The complaint argues the proclamation exceeds presidential authority under INA §§ 212(f), 215(a) and violates the Administrative Procedure Act.

The $100,000 payment and when it applies

The amount is $100,000. State Department guidance says the restriction applies to H-1B visa issuance and entry based on petitions filed with USCIS after the effective time on September 21, 2025, 12:01 a.m. EDT. The page notes that DHS will handle exceptions and confirms no visas were revoked under this order. Agencies may issue more clarifications for edge cases such as extensions or amendments.

Immediate steps

Pause non-critical new H-1B starts, map exposure, prepare a national-interest exception file for critical roles, and track the docket for TRO or preliminary-injunction activity.  

What the proclamation says

The proclamation, Restriction on Entry of Certain Nonimmigrant Workers, makes admissibility for H-1B workers contingent on proof that the sponsoring employer has made a $100,000 payment. It frames this as a condition of entry, not a new USCIS filing fee, and directs DHS and State to build the checks that confirm payment during petition and visa processing. DHS may grant case-by-case national-interest exceptions, with criteria and documentation to be defined in agency materials. The text leaves several mechanics to implementation, including what counts as acceptable proof of payment, when proof must be shown in the workflow, and how special filings such as portability or amendments will be treated. It also anticipates follow-on agency actions related to selection and wage policy, which would proceed through separate processes.

How agencies framed scope

Public-facing materials from USCIS and the State Department reference new H-1B petitions after the effective time, with additional clarification expected for edge cases such as amendments, portability, cap-exempt filings, and in-country change-of-status.  

The lawsuit in California

Case: Global Nurse Force et al. v. Trump et al., No. 3:25-cv-08454 (N.D. Cal., filed Oct 3, 2025), before Judge Joseph C. Spero. Plaintiffs include Global Nurse Force, UAW affiliates, AAUP, K-12 charter networks, and religious organizations.  
Key claims in the complaint

• The proclamation exceeds presidential authority under INA §§ 212(f) and 215(a) when used to require a large payment as a condition of entry.

• Agency implementation violates the Administrative Procedure Act.

• The policy causes immediate harm in healthcare, K-12 education, and higher education.  

Early posture: The complaint is filed and docketed. Parties are preparing for emergency relief proceedings.  

Who is most exposed right now

• Healthcare systems and nurse recruitment. Providers forecast hiring pauses, with concern for ICU and emergency coverage. Reports from major metro areas underline risk to research hospitals as well.  

• K-12 districts and rural schools. Districts that rely on H-1B teachers for math, science, and world languages warn of vacancies and enrollment caps.  

• Universities and research labs. Faculty groups and postdoc unions cite stalled hires and grant timelines.  

Several institutions have issued internal travel cautions while they assess exposure.  

Timeline  

• Sep 19, 2025, proclamation issued and published by the White House.  

• Sep 21, 2025, 12:01 a.m. ET, effective time referenced in agency materials.  

• Oct 3, 2025, lawsuit filed in the Northern District of California, Case No. 3:25-cv-08454.  

Practical Steps for Employers

(Information only, not legal advice)

• Freeze non-critical new H-1B starts until there is clarity from the court or agencies. Keep a record of role urgency and service impact.  

• Map exposure. Build a simple inventory: open H-1B-target roles, candidates in pipeline, locations, and the budget impact if the payment applies. Share the numbers with finance and HR.

• Prepare a national-interest file for critical roles, especially in patient care, school staffing, or public safety. Collect coverage data, letters from department heads, and partner statements.  

• Consider lawful alternatives where suitable. Review J-1 and O-1 eligibility for individual candidates, or staged hiring that does not trigger a new petition. Check compliance risk before any changes.

• Advise on travel. For affected staff, coordinate with counsel before international trips until scope is clearer.  

• Track the docket for TRO and preliminary-injunction activity. Early rulings will guide near-term planning.  

FAQs

Does the $100,000 fee requirement apply to extensions with the same employer

Current public materials focus on new petitions after the effective time. Wait for specific agency instructions on extensions, amendments, and portability.  

Are cap-exempt universities and nonprofits covered

Unclear in published materials. Institutions have asked DHS and State to clarify treatment for cap-exempt filings.  

Is this an entry restriction or a filing fee

The proclamation frames it as entry, and agencies reference payment verification during petition and visa processing, which is why new petitions are in focus.  

How to build a national-interest exception file?

• Describe the role and the service coverage at risk, for example, ICU nurse staffing or a STEM teaching gap.

• Add quantitative evidence, for example, patient-to-nurse ratios or class coverage data.

• Include letters from department heads and community partners about public interest impact.

• Attach staffing ratios, incident coverage data, and any grant or accreditation deadlines.

• Keep a short update log, dates, and actions taken.

This aligns with the proclamation’s exception concept.  

OnBlick will continue to monitor the Proclamation and other changes to the H-1B visa to offer more details as they become available. If you wish to know more about OnBlick’s H-1B services, book a free demo today.

Disclaimer: This article provides general information only. It is not legal advice.

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