H-1B Visa Fee UPDATE: First Lawsuit Filed, U.S. Chamber Urges White House to Rescind Proclamation

Last week, TechServe wrote about the September 19, 2025, Presidential Proclamation, which requires a $100,000 fee for all new H-1B visa petitions. The Proclamation took effect on September 21, 2025. We noted that litigation was expected, although it was not certain who would file the first lawsuit and when.

On Friday, October 3, 2025, a coalition of plaintiffs, represented by several nonprofit law firms and associations, as well as local law firms, filed a lawsuit in the United States District Court for the Northern District of California. Plaintiffs include individuals and organizations from the healthcare industry (including a nursing staffing agency), K-12 education, religious groups, and research and academic institutions.

The Plaintiffs argue that the Proclamation is arbitrary and capricious, and the “extortionate fee” exceeds statutory and presidential authority. Furthermore, the vague and misapplied language, specifically as written in the Proclamation and subsequent guidance, applies to any new petition. The complaint details the immediate impact on vital services, including amplifying the severe nursing shortage.

We will continue to monitor the litigation’s progress and report back on developments.

U.S Chamber Urges White House to Rescind the Proclamation

Within days of the effective date, the U.S. Chamber of Commerce, on September 26, 2025, wrote to Commerce Secretary Howard Lutnick, requesting that the Administration rescind the Proclamation. The letter highlights the significance of immigration to the U.S. workforce and innovation, as well as the disproportionate impact of visa fees on small businesses. The Chamber wrote,

“[W]e believe it would be beneficial for the administration to rescind the proclamation of September 19, 2025 imposing the new $100,000 fee and instead we encourage the administration to work with Congress to look at reforms to the H-1B program that could accompany an increase in the number [of] visas annually available to meet the needs of our growing economy.

Should the administration wish to maintain the proclamation, we urge you to offer further clarifications around its application that would address the questions detailed in the enclosed attachment.”

TechServe will continue to work with other stakeholders and report back on developments. To date, we understand the Administration has not responded to the Chamber’s letter.