10 October 2025
In a major legal development that could reshape the landscape of employment-based immigration, a federal lawsuit has been filed challenging President Trump’s recent Presidential Proclamation requiring a $100,000 fee for new H-1B petitions. This litigation marks the first major test of executive authority in immigration since the 2025 Proclamation took effect—and employers across the U.S. are paying close attention.
As experienced immigration attorneys in New Jersey, VKM Law Group is monitoring this closely. Here’s what employers and foreign professionals need to know.
Background: The September 2025 Proclamation
On September 19, 2025, President Trump issued a Proclamation titled:
“Restriction on Entry of Certain Nonimmigrant Workers.”
Effective September 21, 2025, this order mandates that U.S. employers must pay a $100,000 fee with any new H-1B petition for foreign workers outside the United States.
Claimed Purpose:
The stated goal is to “protect American workers” and discourage the “overuse” of the H-1B program.
Immediate Impact:
- Widespread confusion among employers
- Major disruptions in tech, healthcare, and research sectors
- Stalled recruitment for global talent
The Legal Challenge: Who’s Suing?
A coalition of immigration advocacy groups, employers, and professional associations filed suit in the U.S. District Court for the Northern District of California.
Key Arguments in the Lawsuit:
- Exceeds Presidential Authority
The Proclamation violates the Immigration and Nationality Act (INA) by imposing a fee structure not authorized by Congress. - Violates the Administrative Procedure Act (APA)
The rule was enacted without notice or public comment, bypassing essential procedural safeguards. - Unjustified and Arbitrary Fee
The $100,000 charge is not based on any cost analysis and vastly exceeds actual petition processing costs.
Harm Claimed by Plaintiffs:
- Withdrawn job offers
- Project delays and staffing gaps
- Long-term impact on competitiveness in key sectors
What the Plaintiffs Want
The lawsuit asks the court to:
- Block enforcement of the $100,000 fee immediately
- Declare the Proclamation unlawful
- Require USCIS to continue processing H-1B petitions under existing rules
What This Means for Employers in New Jersey and Nationwide
Until the court rules, the $100,000 fee remains in effect. However, the legal uncertainty poses major challenges for employers trying to navigate the 2026 H-1B season.
VKM Law Group Recommends:
- Document all H-1B filings carefully, including fee payments
- Track how the policy affects hiring timelines, offers, and project deliverables
- Prepare to adjust workforce planning as the legal situation evolves
If your company is preparing for the next H-1B cycle or considering options for hiring foreign talent, now is the time to consult with a qualified immigration attorney.
We’re Here to Help
At VKM Law Group, we specialize in helping businesses, startups, and professionals navigate complex immigration challenges. Our team has deep experience in H-1B visa strategy, compliance, and litigation support.