The U.S. Chamber of Commerce filed a federal lawsuit challenging the Presidential Proclamation issued by the president on September 19, 2025, which restricts the entry of certain H-1B visas and seeks to impose a $100,000 fee per employee on their sponsoring employers. This fee was imposed by the proclamation. The case, Chamber of Commerce v. Department of Homeland Security, Case No. 1:25-cv-03675 (D.D.C., filed October 16, 2025), marks the second legal challenge to the controversial proclamation in just two weeks.
Background: The Presidential Proclamation and the $100,000 Fee
The September 19 Proclamation targets employers who rely on H-1B specialty occupation workers, stating that affected foreign nationals will be barred from entering the United States after September 20, 2025, unless:
- Their employer pays a $100,000 fee per employee,
- The employer receives a national interest exception (NIE), or
- The employee is exempted from the proclamation under limited circumstances, such as those working for certain nonprofit research organizations, government research organizations, or colleges and universities. However, while some entities are exempted from the cap, they may not be exempted from the increased fee.
The fee applies to employers who are not exempted and must be paid before the foreign national can enter the United States under the H-1B program.
The cost of the $100,000 fee represents a significant financial burden for employers, potentially impacting their ability to hire international talent. This fee must be paid by the employer, not the employee, as part of the H-1B petition process. The high cost could reduce participation in the H-1B program, as some employers may be unable or unwilling to pay the increased fees. Colleges and universities, which play a key role in the H-1B program and are often cap-exempt, may also be affected by the new fee structure, especially in their efforts to recruit international researchers and faculty.
In the H-1B visa process, approval of the petition is required before employment can begin. The new $100,000 fee will apply to new petitions for H-1B visas, adding another layer of complexity and expense for employers.
While the government has issued preliminary guidance to clarify the scope of the policy, many aspects remain uncertain — including who exactly is subject to the fee and how it will be implemented. Notably, as of now, USCIS has not begun collecting this fee for H-1B petitions filed or pending with the agency.
Background on the H-1B Program
The H-1B program, established under the Immigration and Nationality Act (INA), is a cornerstone of U.S. immigration policy that enables employers to hire highly skilled foreign professionals in specialty occupations. Administered by the Department of Security, the H-1B visa program is subject to annual quotas and is vital for a wide range of sectors—including technology companies, healthcare organizations, academic programs, financial firms, and religious organizations. For international students and university professors, the H-1B visa often serves as a critical bridge to employment in the United States after completing their studies.
The Trump administration’s recent proclamation imposing a $100,000 fee on new H-1B visa petitions has generated significant controversy and prompted multiple lawsuits. Plaintiffs argue that the fee exceeds presidential authority and violates the INA, which delegates the power to set visa fees to Congress, not the executive branch. The Global Nurse Force—a coalition of nursing, academic, and religious organizations, labor unions, and anonymous individuals—has filed a lawsuit in the Northern District of California, challenging the proclamation and seeking to block enforcement of the new fee requirement. Similarly, the American Association of University Professors has joined the legal battle, contending that the fee would restrict access to global talent and harm universities, students, and local communities.
A central issue in these lawsuits is the Trump administration’s failure to comply with the Administrative Procedure Act, which requires federal agencies to provide notice and an opportunity for public comment before imposing new fees or regulations. The proclamation was issued without following these procedures, leading to claims that the fee is arbitrary, capricious, and unlawful. While the White House and government agencies have released additional guidance on the scope and imposition of the fee, many questions remain unanswered, leaving employers and H-1B workers in a state of uncertainty.
The U.S. Chamber of Commerce has also filed suit, arguing that the $100,000 fee is not only unlawful but would make it prohibitively expensive for U.S. employers to participate in the H-1B program and access the global talent needed to remain competitive. The chamber argues that the fee would ultimately harm American workers and the broader economy, as it is not authorized by Congress and undermines the intent of the INA.
The outcome of these lawsuits in federal district court will have far-reaching implications for employers, universities, and international students who depend on the H-1B program. If the court finds that the proclamation violates the law or exceeds presidential authority, enforcement of the $100,000 fee could be halted or significantly limited. As the legal process unfolds, organizations employing H-1B workers must closely monitor updates from the court and government agencies to ensure compliance and minimize risk. The situation remains fluid, and staying informed is essential for all stakeholders affected by the proclamation imposing new fees on the H-1B program.
The Chamber’s Lawsuit: Exceeding Presidential Authority
In its complaint, the U.S. Chamber of Commerce argues that the Proclamation:
- Exceeds the President’s statutory authority by attempting to override immigration laws enacted by Congress, specifically the statute establishing and regulating the H-1B visa program;
- Misapplies the President’s power under Section 212(f) of the Immigration and Nationality Act (INA), which allows restrictions on entry only when necessary to protect U.S. interests;
- Fails to provide factual findings or justification showing that admitting H-1B professionals would harm U.S. workers or national interests; and
- Violates the Administrative Procedure Act (APA) by implementing significant policy changes without proper rulemaking or notice.
The lawsuit challenges an agency action that allegedly exceeds statutory and legal authority. Attorneys representing the plaintiffs play a key role in demonstrating imminent harm and seeking injunctive relief against the government’s actions.
The lawsuit reflects growing concern among U.S. employers — particularly in technology, healthcare, and research sectors — that rely on skilled foreign workers to fill critical roles.
A Second Legal Challenge: Global Nurse Force v. Trump
This new case follows a similar lawsuit filed earlier this month — Global Nurse Force v. Trump, Case No. 3:25-cv-08454 (N.D. Cal., filed October 3, 2025). That suit also challenges the legality of the Proclamation but focuses more heavily on due process violations and economic harm to U.S. employers and foreign healthcare professionals. In both cases, the plaintiffs are seeking relief from the court to prevent enforcement of the $100,000 H-1B visa fee proclamation.
Together, the two lawsuits signal strong resistance from both private industry and professional organizations to what many view as an unprecedented financial and administrative burden on U.S. employers sponsoring foreign talent. The legal challenges have arisen directly in response to the Trump administration’s actions, which introduced new restrictions and fees for visa applicants through executive proclamations.
What Happens Next
It is widely expected that plaintiffs in one or both cases will seek a preliminary injunction to temporarily block enforcement of the $100,000 fee and entry restrictions while litigation continues.
Until then, employers and foreign nationals should monitor ongoing developments closely, as new court orders or agency guidance could be issued with little notice. Legal counsel and organizations will provide updates as the situation evolves.
What Employers Should Do Now
- Stay informed: Regularly review updates from reliable immigration law sources and legal counsel.
- Avoid prepayment: Do not pay any purported “H-1B fee” unless officially implemented by USCIS or the Department of State.
- Document compliance efforts: Maintain thorough records of all communications and filings related to H-1B petitions and travel.
- Consult immigration counsel: Before making travel, hiring, or petition decisions that could be impacted by the Proclamation.
Conclusion
The Chamber of Commerce’s lawsuit represents a major challenge to the executive branch’s authority over employment-based immigration policy. As the case proceeds, it could reshape the limits of presidential power in the immigration context and determine how far future administrations may go in imposing new fees or restrictions on visa programs.
If you have any questions about this Presidential Proclamation, please contact our Chicago, IL office for guidance. At HSD Immigration Lawyer, we specialize in complex employment– investment- and family-based immigration matters.