Twenty States File Third Legal Action Challenging $100,000 H-1B Fee

December 2025

Introduction

Twenty U.S. states have filed a federal lawsuit challenging the September 19 Presidential Proclamation and related federal agency policies that impose a $100,000 fee on certain H-1B nonimmigrant petitions. The states seek to block implementation of the fee, arguing that it is unlawful under federal administrative and constitutional law. This action marks the third court challenge to the proclamation and fee policy.

The Issue

The lawsuit, State of California, et al. v. Kristi Noem, et al., No. 1:25-cv-13829 (D. Mass., filed Dec. 12, 2025), contests policies requiring U.S. employers to pay a $100,000 fee per affected employee for certain H-1B petitions subject to consular notification.

The plaintiff states are: Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin.

Defendants include the Departments of Homeland Security, State, Labor, and Justice.

As implemented, the September 19 proclamation prohibits approval of H-1B petitions filed after September 20, 2025, where the petition is filed for—or only approvable for- consular notification, unless:

• The employer pays the $100,000 fee per covered employee;
• The employer receives a national interest exception; or
• The employee is otherwise exempt from the fee.

The plaintiff states allege that the implementing policies:

• Violate the Administrative Procedure Act (APA) by bypassing notice-and-comment rulemaking;
• Exceed statutory authority by imposing fees unrelated to agency costs;
• Are arbitrary and capricious in implementation; and
• Violate the constitutional separation of powers.

The states seek declaratory and injunctive relief setting aside the challenged policies.

Two Other Lawsuits 

The lawsuit follows two earlier challenges:

• Chamber of Commerce v. DHS, No. 1:25-cv-03675 (D.D.C., filed Oct. 16, 2025), in which plaintiffs seek a preliminary injunction barring enforcement of the fee. A hearing is scheduled for December 19, 2025.
• Global Nurse Force v. Trump, No. 3:25-cv-08454 (N.D. Cal., filed Oct. 3, 2025).

Each action challenges the proclamation on overlapping, though not identical, legal grounds.

Conclusion

Employers and foreign nationals should closely monitor these cases. Court orders or agency guidance could result in rapid changes to H-1B filing requirements with little advance notice.

This bulletin is for informational purposes only and does not constitute legal advice.