Lawsuit Challenges $100,000 H-1B Surcharge

Immigration Updates

A coalition of plaintiffs has sued the Trump administration to block its proclamation imposing a $100,000 surcharge for H-1B visas. The lawsuit, Global Nurse Force et al v. Trump, was filed October 3, 2025 in federal district court in California.

The H-1B program was established by Congress and is codified in the Immigration and Nationality Act. The statute permits U.S. employers to hire high-skilled foreign workers in specialty occupations, subject to annual quotas. It is a key visa utilized across numerous business sectors, including healthcare organizations, academic and research institutions, technology companies, financial firms, and religious organizations, among others.

On September 19, 2025, the Trump administration announced the proclamation imposing a supplemental $100,000 fee for new H-1B visas. The proclamation is framed as a U.S. entry ban, barring the entry of H-1B visa holders from the U.S. unless their employers pay an additional $100,000 fee. The proclamation caused widespread confusion among employers and H-1B visa holders, many of whom were abroad, and who scrambled to return to the U.S. Government agencies responded by announcing policies for limited implementation of the fee, some of which contradicted the terms of the proclamation itself.

The lawsuit, Global Nurse Force et al v. Trump, alleges that the proclamation violates the Immigration and Nationality Act, which, in establishing the H-1B program, sets standards and limits for H-1B entry, and does not authorize issuance of such a fee. Imposition of the fee – essentially a tax – exceeds presidential authority.

The complaint further alleges that the proclamation violates the Administrative Procedures Act and the Regulatory Flexibility Act, insofar as imposition of the fee exceeds presidential authority, is arbitrary and capricious, and was imposed without required public notice and comment in accordance with rulemaking procedures required by law.

The plaintiffs are seeking a declaration from the court that the fee is unlawful and should be set aside. Plaintiffs are also seeing an injunction against enforcement of the fee and all associated agency action.

The case is Global Nurse Force et al v. Trump, 4:25 -cv-0854, (N.D. California). The plaintiffs include Global Nurse Force, a healthcare staffing agency, the American Association of University Professors, and the U.A.W. International, among others. The complaint is available here.

Van Der Hout LLP will be monitoring the case closely, and we will provide updates as the litigation proceeds.