On October 3, 2025, a coalition of H-1B employers, unions, educational institutions, religious organizations, and H-1B employees filed a lawsuit challenging President Trump’s Proclamation restricting the entry of certain H-1B specialty occupation workers into the United States. The Proclamation sets out a requirement of a $100,000 payment by employers who wish to sponsor H-1B workers from outside the United States, with later agency clarifications that the fee would not apply to “renewals” of H-1Bs that were valid when the Proclamation took effect on September 21.
Constitutional and Statutory Basis of the Suit
The lawsuit brings both constitutional and statutory challenges to the Proclamation’s setting a $100,000 payment as a “condition” on entry of H-1B employees to the United States. The lawsuit seeks a declaration that the Proclamation and the $100,000 fee are unlawful and asks the court to set aside and enjoin the Administration and the agencies involved in making immigration decisions from taking any actions to impose a fee under the Proclamation.
On the constitutional side, the lawsuit raises two separation of powers challenges. These challenges assert that the Proclamation imposes a new fee in violation of the statutory scheme Congress created for existing H-1B fees, and separately that it imposes a new fee or tax on H-1B visas in violation of Congress’s exclusive authority to impose taxes.
On the statutory side, the lawsuit challenges the Proclamation’s imposition of a $100,000 fee even though language in the Immigration and Nationality Act only authorizes fees specifically to cover the actual costs of adjudicating cases. The lawsuit also challenges the Proclamation under the Administrative Procedure Act, claiming that the imposition of the $100,000 fee should have been made with notice to the public in a rulemaking, and that the fee was arbitrarily determined without any reasoned justification for the fee.
Klasko is Monitoring Developments
The Litigation Team at Klasko has assessed the complaint and legal arguments made and believes the organizations that brought the suit have made strong legal arguments against the legality of the Proclamation. There continue to be options for participation in support of the lawsuit by companies, institutions, and individuals who believe they will be harmed by the Proclamation. If you are interested in supporting the lawsuit, please speak with a member of the Klasko Litigation Team.
We know clients and employers are interested in learning when there will be more clarity about the $100,000 fee in the Proclamation, as well as which organizations will be exempt from the fee. This lawsuit is likely to result in additional filings seeking preliminary relief from the fee while the lawsuit continues. Our team will continue to update clients as we learn more and the lawsuit progresses.
H-1B Alternatives to Consider
Litigation outcomes often take months or years to resolve. For many U.S. employers and their sponsored employees, waiting that long can lead to significant business and career disruptions. At Klasko Immigration, we have extensive experience helping organizations and foreign professionals navigate complex immigration challenges like this one.
Explore our prior blog and infographic, outlining practical H-1B alternatives, including a deeper look at the O-1 visa as an alternative to an H-1B. If your situation is time-sensitive and cannot wait for the outcome of ongoing litigation, contact a Klasko attorney today to discuss tailored strategies that keep your workforce and your plans on track.
The material contained in this alert does not constitute direct legal advice and is for informational purposes only. An attorney-client relationship is not presumed or intended by receipt or review of this presentation. The information provided should never replace informed counsel when specific immigration-related guidance is needed.
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