Trump’s H1B 100K Fee: Lawsuit Filed. Key Arguments, Chances?

President Trump signed a Proclamation(similar to an Executive Order) on September 19th, 2025, that adds a $100,000 fee for H1B visa applicants planning to enter the US from abroad. There was a lot of chaos due to the lack of proper guidance from USCIS or the Department of State.

Eventually, there was some guidance given by the USCIS and CBP related to the proclamation and who it impacts. But, it did not clarify all the scenarios, and many questions are still unaddressed. Since then, many organizations have been working on filing a lawsuit against the Trump Administration related to the proclamation.

On Friday, October 3rd, 2025, a group of organizations filed a lawsuit in the US District Court for the Northern District of California challenging President Trump’s Proclamation. In this article, we will look at the Lawsuit, key arguments in the lawsuit, and assess its chances.

Background: Trump’s H1B $100K Fee Proclamation

Below is a brief background of the proclamation signed by President Trump:

• Proclamation Signed: President Trump signed a declaration on September 19th, 2025, to address the abuse of the H1B Program and help American Workers.
• Primary Reason for Proclamation: The proclamation states that mainly Information Technology(IT) firms have abused the H1B program. Also, it says that many American Tech Companies have done thousands of layoffs of their American workers, but at the same time, have hired many H1B workers. 
• Key Idea behind the Proclamation: As per the proclamation, the entry of H1B workers into the US is restricted. Only those H1B visa holders who have paid $100,000, unless they fall under the exceptions for national interest, are allowed to enter the US starting from the effective date of the proclamation, which is 12:01 EST on September 21, 2025.

Since the proclamation was signed, many organizations have been working to file a lawsuit challenging it. On Friday, October 3rd, 2025, it was filed in the US District Court for the Northern District of California. Let’s dive into the details

Summary of the H1B $100K Fee Lawsuit

Below are the details of the lawsuit filed in Court:

• Lawsuit Title: Global Nurse Force et al v. Trump et al.
• Case Number: 3:25-cv-08454
• Location: US District Court for the Northern District of California
• Who filed the lawsuit: The lawsuit was filed by a group of organizations, including the Global Nurse Force, the American Association of University Professors (AAUP), the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW), and others.
• The Lawsuit document is 65 pages in length.

Below is the screenshot from the actual lawsuit document related to the parties involved.

Key Arguments in the H1B $100K Fee Lawsuit

Below are some of the key argument points raised in the Lawsuit by the plaintiffs:

Overreach by the President:

• They argue that the President does not have the power to impose any fee, such as $100,000 fee. The US Congress controls the immigration fees and taxation. It violates the US Constitution’s “power of the purse” clause.
• The President exceeded his presidential authority under the Immigration and Nationality Act (INA) sections 212(f) and 215(a) by imposing this fee.

Violation of the Law under Statute

• They argue that the US Congress defines the H1B Program as per the Immigration and Nationality Act (INA).
• The DHS or the US Department of State cannot state that they will not process petitions or visas unless the fees are paid, as this is not something that Congress has approved under the H1B program.

Does not follow the Administrative Procedure Act(APA):

• Usually, all federal agencies must follow the proper process of rulemaking, which includes public notice, comment, and then publishing a rule. In the case of the $100,000 fee, none of these were followed.
• The decision to impose a $ 100,000 fee is arbitrary and capricious, as it failed to consider several key factors, including its impact on small businesses, non-profits, and religious organizations. The administration has violated the Regulatory Flexibility Act.

Economic and Social Harm for many organizations

• The lawsuit gives a lot of examples of how the $100K fee would disrupt many organizations
  • Hospitals are struggling with a shortage of nurses, and this fee will not alleviate the issue.
  • How the K-12 schools are dependent on foreign language instructors from abroad, including STEM Teachers, and this $100K fee will not help.
  • How many religious organizations will struggle to sponsor clergy
  • How many universities and research labs that employ researchers will be impacted?

There are numerous additional examples and points presented in the lawsuit document to strengthen the case. For the sake of brevity, we have not covered all the arguments.

Below is the screenshot of the some of the key argument points in the lawsuit document:

The Decision Plaintiffs Want in the Lawsuit

As per the lawsuit document, below are the things that the plaintiffs are asking the court to do:

• Declare the $100,000 fee as unlawful and remove the main sections of 1,2, and 3(a) listed in the proclamation.
  • The 1, 2, and 3(a) in the proclamation represent the central issue of $100,000 fee for H1B Applicants and its implementation, including compliance.
• Stop all federal agencies, including DHS, USCIS, CBP, and the US Department of State, from implementing the requirements specified in sections 1, 2, and 3(a) of the proclamation.
• Ask government agencies, such as DHS, USCIS, and the Department of State, to process H1B petitions and visas in accordance with existing law without the new $ 100,000 fee.

Below is the screenshot of what they are asking as it appears in the Lawsuit Document

Chance of Success of the H1B $100K Fee Lawsuit?

• The Plaintiffs make very compelling arguments in the lawsuit, such as the following:
  • The ability to impose a fee rests with the US Congress.
  • Not following the Administrative Procedure Act(APA) processes properly.
  • The immediate harm to health care workers, universities, religious workers, etc.
  • The President is overreaching his INA power.
• The Defendants (Trump Administration) may argue some of the following:
  • The President has broad power to protect American workers
  • The H1B program is abused, and banning entry is in the interest of US workers.
  • The President put in the proclamation for national interest, security, and the fee is part of their discretion to do so.

If we look at the overall arguments, I believe that the Plaintiffs have a better argument as the harm is immediate and the President does not have the power to impose $100,000 Fee for H1B holders.

Having said that, there are some areas where the Trump administration will play with the national interest, security, and arguments of American workers impacted, and courts may consider their arguments.

I believe that there is about a 70% chance that the Courts may give a favorable ruling for the plaintiffs. Some of the asks may or may not be granted to the plaintiffs. We need to wait and see.

What do you think of the lawsuit? Share your thoughts in the comments section below