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States vs. Trump’s $100,000 H–1B fee: a courtroom fight over who controls immigration policy

States vs. Trump’s $100,000 H–1B fee: a courtroom fight over who controls immigration policy

Rule Changes
By Newzino Staff |

A single proclamation turned a work-visa petition into a six‑figure price tag—and triggered a multi-front legal war.

December 12th, 2025: Twenty states sue: “Congress didn’t authorize this”

Overview

The Trump administration didn’t just tighten H‑1B visas. It put a $100,000 toll booth on “new” petitions—and dared employers to pay up. Now twenty states are trying to blow up that toll booth in federal court, calling it an illegal end-run around Congress.

The stakes aren’t only about tech hiring. States say the fee hits the places that can’t just pass costs along—public universities, hospitals, and school systems already scraping through shortages. Underneath it all is the bigger fight: can a president effectively rewrite immigration economics with a proclamation and agency guidance, or does that cross the line into lawmaking and taxation?

Key Indicators

$100,000
New H‑1B payment requirement challenged in court
A proclamation-linked payment applied to certain new H‑1B filings after Sept. 21, 2025.
20
Plaintiff states
A coalition led by California and Massachusetts filed in federal court.
$960–$7,595
Typical initial H‑1B fee range (pre-policy)
States argue the new amount is untethered from processing costs.
3
Major parallel legal challenges (at least)
States plus earlier suits from a business group and a broad coalition of workers/employers.

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Debate Arena

Two rounds, two personas, one winner. You set the crossfire.

People Involved

Donald Trump
Donald Trump
President of the United States (Policy author; proclamation-based fee faces multiple lawsuits)
Rob Bonta
Rob Bonta
California Attorney General (Co-lead plaintiff; publicly leading the state coalition challenge)
Andrea Joy Campbell
Andrea Joy Campbell
Massachusetts Attorney General (Co-lead plaintiff; venue anchor for Massachusetts federal court filing)
Kristi Noem
Kristi Noem
U.S. Secretary of Homeland Security (Named defendant; DHS charged with implementing the policy)
Marco Rubio
Marco Rubio
U.S. Secretary of State (Named defendant; State Department role implicated in visa issuance/entry framework)
Lori Chavez-DeRemer
Lori Chavez-DeRemer
U.S. Secretary of Labor (Named defendant; DOL role implicated in H‑1B labor certification ecosystem)
Pam Bondi
Pam Bondi
U.S. Attorney General (Named defendant; DOJ defending policy in court)

Organizations Involved

White House
White House
Executive Office
Status: Issued proclamation and public rationale; coordinating implementation

The policy’s political engine—selling the fee as reform and directing agencies to execute it.

U.S. Department of Homeland Security (DHS)
U.S. Department of Homeland Security (DHS)
Federal Agency
Status: Primary implementing agency; central defendant in all major suits

DHS runs the pipeline that turns the proclamation into petition processing rules.

U.S. Citizenship and Immigration Services (USCIS)
U.S. Citizenship and Immigration Services (USCIS)
Federal Agency
Status: Processing gatekeeper; guidance defines scope of who pays

USCIS is where the $100,000 policy becomes real paperwork and real denials.

California Department of Justice (Office of the Attorney General)
California Department of Justice (Office of the Attorney General)
State Agency
Status: Lead plaintiff office coordinating the 20-state lawsuit

California is driving the legal challenge and the public narrative about service-sector harm.

Massachusetts Office of the Attorney General
Massachusetts Office of the Attorney General
State Agency
Status: Co-lead plaintiff; filing venue in the District of Massachusetts

Massachusetts anchors the states’ case in federal court and emphasizes research/health impacts.

U.S. Chamber of Commerce
U.S. Chamber of Commerce
Business Advocacy Organization
Status: Plaintiff in a separate earlier federal suit challenging the fee

The Chamber positioned the fee as an unlawful, job-killing cost spike for employers.

Democracy Forward
Democracy Forward
Legal Advocacy Organization
Status: Counsel for a broad coalition challenging the fee in a separate case

Democracy Forward helped launch the first broad coalition suit against the fee.

Timeline

  1. Twenty states sue: “Congress didn’t authorize this”

    Legal

    California and Massachusetts lead a 20-state coalition in the District of Massachusetts, challenging the $100,000 fee as exceeding statutory authority and skipping required rulemaking.

  2. Congressional researchers summarize the new H‑1B landscape

    Investigation

    A CRS analysis lays out the proclamation theory, scope clarifications, and policy knock-on effects that are now showing up in court filings.

  3. USCIS guidance narrows the blast radius

    Rule Changes

    New guidance clarifies which petitions trigger the payment and which do not, signaling partial retreat without abandoning the core policy.

  4. Business escalates: U.S. Chamber files its own case

    Legal

    The U.S. Chamber of Commerce sues in D.C. federal court, arguing the proclamation exceeds presidential authority and breaks the statutory fee framework.

  5. First big lawsuit: hospitals, unions, schools sue

    Legal

    A broad coalition files suit in the Northern District of California, arguing the fee is unlawful, unconstitutional, and procedurally defective under the APA.

  6. Effective date triggers confusion, travel reshuffles

    Rule Changes

    The proclamation’s payment condition begins applying to covered new filings after the effective timestamp, pushing employers toward emergency planning and legal counsel.

  7. Trump drops the $100,000 H‑1B bomb

    Rule Changes

    President Trump issues a proclamation restricting entry of certain new H‑1B workers unless a $100,000 payment is made. Employers and institutions scramble to understand scope, exemptions, and mechanics.

Scenarios

1

Judge freezes the fee nationwide while cases proceed

Discussed by: Plaintiffs’ filings and legal coverage tracking injunction bids (e.g., Reuters; major immigration-law firm alerts)

A court grants a temporary restraining order or preliminary injunction after finding likely statutory/APA violations and irreparable harm to hospitals, schools, and universities. The administration appeals, but the practical effect is immediate: the $100,000 condition stops being enforced (or can’t be enforced) while the merits are litigated.

2

Courts uphold the proclamation theory and the fee survives

Discussed by: Administration arguments previewed in public materials; legal analysts debating broad presidential entry powers

The government persuades courts that the payment is a lawful condition tied to entry restrictions and that agencies can implement it through guidance. If appellate courts accept that framing, employers face a new normal: either pay for overseas hires or retool hiring pipelines toward domestic conversions and cap-exempt strategies.

3

Administration narrows the fee into a selective lever, not a universal toll

Discussed by: USCIS guidance updates and coverage noting shifting scope and exemptions

Without conceding illegality, DHS/USCIS keeps narrowing categories through guidance and waiver practices—reducing immediate chaos and undercutting some plaintiffs’ urgency arguments. The fee remains on the books but is applied to a narrower slice of cases, turning the policy into a bargaining chip and enforcement tool rather than a blanket hiring stopper.

4

Congress steps in: codifies limits on fee-setting—or ratifies the fee

Discussed by: CRS analysis and long-running bipartisan H‑1B reform debates referenced by lawmakers

Facing legal uncertainty and employer pressure, Congress could clarify that immigration petition fees must track costs and require notice-and-comment for major changes—or it could explicitly authorize a large surcharge. Either move would reshape the courts’ role by turning a separation-of-powers fight into a straight statutory interpretation question.

Historical Context

Trump’s 2017 travel ban litigation (Trump v. Hawaii)

2017-01 to 2018-06

What Happened

Early executive restrictions on entry triggered immediate nationwide injunction fights, rapid policy revisions, and a sprint to the Supreme Court. The legal battle became a referendum on how much deference courts owe a president using entry-power statutes.

Outcome

Short Term

Policy morphed through revisions while courts narrowed and tested it.

Long Term

The Supreme Court ultimately upheld a revised version, reinforcing broad entry-power deference.

Why It's Relevant Today

This H‑1B fight uses the same basic playbook: entry authority leveraged to achieve domestic policy goals.

Trump-era restrictions on work visas during 2020 (including H‑1B-related suspensions)

2020-06 to 2021-03

What Happened

The administration used presidential proclamations and agency moves to restrict work visas and reshape employment-based immigration. Employers, universities, and advocacy groups sued, arguing over statutory authority and administrative procedure.

Outcome

Short Term

Litigation and policy churn produced uncertainty and partial rollbacks.

Long Term

Courts and subsequent administrations narrowed or reversed several measures, but the executive-action template endured.

Why It's Relevant Today

It shows how quickly work-visa policy can turn into whiplash—and why plaintiffs focus on APA process.

Congressional fee-setting for H‑1B (ACWIA and later statutory surcharges)

1998-10 to 2004-12

What Happened

Congress imposed and revised H‑1B-related fees and training surcharges through legislation, explicitly linking payments to specific purposes and guardrails.

Outcome

Short Term

Employers paid higher statutory fees with clear legislative authorization.

Long Term

It cemented the norm that big H‑1B fee changes come from Congress, not improvisation.

Why It's Relevant Today

It clarifies the core dispute: plaintiffs argue the administration is trying to do legislatively what Congress historically did itself.

10 Sources:
+4
Office of Minnesota Attorney General Business Insider California Department of Justice Reuters Congressional Research Service (Congress.gov) The White House Democracy Forward Fragomen Association of American Universities California Department of Justice (court filing link)