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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

A proclamation turned work-visa petitions into six-figure price tags. Two judges have now blocked it, and the appeals are underway.

Overview

Updated Nov 2

Two federal judges have blocked the Trump administration's $100,000 fee on new H-1B petitions. A Boston judge ruled in June that the fee is an unlawful tax Congress never authorized, and a California judge ruled Sept. 30 that the administration skipped required rulemaking.

The administration is appealing both rulings and pushing a nearly identical permanent fee of about $103,000 through rulemaking. In late October, California plaintiffs asked for a fast path to final judgment, while the government asked the court to wait for the Ninth Circuit; a stay hearing is set for Jan. 14, 2027. Since the blocks, USCIS has begun approving some petitions filed without the payment, though the appeals remain open.

Why it matters

Whether a president can impose six-figure visa fees by proclamation decides who controls the H-1B program: the White House or Congress.

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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. Currently blocked by two courts.
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.
2
Federal judges who blocked the fee
Districts of Massachusetts and Northern California both ruled against the policy. The Northern California ruling is on appeal.
3
Major parallel legal challenges (at least)
States plus earlier suits from a business group and a broad coalition of workers/employers.

Voices

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People Involved

Organizations Involved

White House
White House
Executive branch of the U.S. government
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
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
Processing gatekeeper; has begun approving some petitions filed without the $100,000 payment after cases stalled past premium processing deadlines

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
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
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
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
Nonprofit law firm
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

September 2025 October 2026

12 events Latest: October 25th, 2026 · 2 weeks ago Showing 8 of 12
Tap a bar to jump to that date
  1. USCIS begins approving petitions filed without the payment

    Latest Rule Changes

    According to immigration law firm Meltzer Hellrung, USCIS has started approving some H-1B petitions filed without the $100,000 payment. Those cases had been pending past premium processing deadlines, and the firm said progress is uneven.

  2. Trump extends fee through Sept. 21, 2027

    Rule Changes

    The White House extends the $100,000 payment requirement for another year, saying it has reduced employers' reliance on lower-paid foreign labor. The move came as legal challenges continued.

  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. 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.

  5. 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

Possible

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

Uncertain

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

Likely

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

Unlikely

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.

5

Appeals courts uphold both fee-freezes

Likely Resolves by Q2 2027

Discussed by: Legal analysts at Reason and Reuters coverage of the litigations

The 1st Circuit already declined to pause the Boston injunction in July. If appellate courts also uphold the California ruling, the fee stays blocked while DHS's permanent $103,000 rule moves through notice-and-comment.

6

Judge rejects the stay and the California case moves to summary judgment

Uncertain Resolves by Jan 14, 2027

Discussed by: Plaintiffs in Global Nurse Force v. Trump, per their Oct. 20 filing

If the court denies the government's stay request, the administrative record would be produced on the plaintiffs' schedule and summary judgment could follow. A final ruling against the fee would be harder to reverse than the current temporary order.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

2017-01 to 2018-06

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

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.

Then

Policy morphed through revisions while courts narrowed and tested it.

Now

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

Why this matters now

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

2020-06 to 2021-03

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

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.

Then

Litigation and policy churn produced uncertainty and partial rollbacks.

Now

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

Why this matters now

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

1998-10 to 2004-12

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

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

Then

Employers paid higher statutory fees with clear legislative authorization.

Now

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

Why this matters now

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

Sources

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