Vance: States may hire Americans before suing over $100K H-1B fee

A Sept. 19, 2025 Proclamation set a $100,000 supplemental H‑1B/entry fee effective Sept. 21, prompting agency guidance and multi‑state and industry lawsuits seeking injunctions. The policy also directs revisions to prevailing wages and prioritizes higher‑paid beneficiaries, raising immediate hiring, travel, and budget uncertainties for employers, universities, hospitals and foreign workers while courts weigh remedies.

Article Updates 1
Jun 8, 2026 Latest

A federal court has upheld the Trump administration’s $100,000 H-1B payment requirement, keeping the policy in effect for certain new petitions. Separately, USCIS and DHS have advanced a wage-weighted H-1B selection system finalized on December 29, 2025 that takes effect for the FY 2027 cap season on February 27, 2026.

  • The Presidential Proclamation creating the $100,000 H-1B payment requirement was issued on September 19, 2025 and took effect on September 21, 2025.
  • The payment applies to certain new H-1B petitions, including cases involving beneficiaries outside the United States and petitions that contemplate consular, port-of-entry, or preflight inspection notification.
  • USCIS guidance says the payment generally does not apply to many extensions of stay, amended petitions, or change-of-status filings inside the United States, including many F-1 to H-1B transitions.
  • A separate H-1B rule finalized on December 29, 2025 shifts the lottery to a wage-weighted selection system, with higher-wage registrations receiving more entries starting with the FY 2027 cap season.
?Key takeawaysVisaVerge.com
  • The Proclamation took effect at 12:01 a.m. September 21, applying to many new H‑1B petitions.
  • Administration imposed a $100,000 H‑1B/entry fee for certain new specialty‑occupation petitions starting Sept. 21, 2025.
  • Twenty states, businesses, universities, and unions filed lawsuits seeking preliminary injunctions to block the fee.

(CALIFORNIA) Senator J.D. Vance told California leaders they “might try hiring Americans” before taking the Trump administration to court over a new $100,000 H‑1B/entry fee, as Democratic attorneys general press federal judges to block what they call an unlawful and sudden price tag on hiring skilled foreign workers. The jab, reported during public exchanges around the litigation, has become a flashpoint in a wider fight over President Trump’s latest immigration move and how far the White House can go by proclamation to reshape the H‑1B program overnight.

Proclamation: what it does and timing

President Donald J. Trump set the fee in a September 19, 2025 Proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers.” The Proclamation says the payment is “supplemental” and would apply to many new H‑1B specialty‑occupation petitions unless an exception applies.

Quick facts — $100,000 H‑1B Proclamation
Supplemental fee
$100,000
H‑1B / entry fee (as stated in Proclamation)
Proclamation & effective date
Proclamation: September 19, 2025
Took effect 12:01 a.m. Eastern on September 21, 2025
Scheduled duration
12 months
Expires 12 months after the effective date unless extended
Who’s challenging it
20 states (including California)
Also challenged by businesses, universities, and unions
Main directives in Proclamation
Revise prevailing wages; prioritize higher‑paid foreign workers
Directives to Labor and DHS could reshape hiring and adjudications

Vance: States may hire Americans before suing over 0K H-1B fee
Vance: States may hire Americans before suing over $100K H-1B fee
  • It took effect at 12:01 a.m. Eastern on September 21, 2025.
  • It is set to expire 12 months after that effective date unless the administration extends it.
  • The Proclamation also:
    • Directed the Secretary of Labor to revise prevailing wage levels (salary benchmarks used in many H‑1B cases).
    • Directed the Secretary of Homeland Security to prioritize higher‑paid foreign workers in adjudications.

Immediate operational questions and agency guidance

Within days of the Proclamation, employers, universities, and visa applicants asked whether the $100,000 charge would be collected:

  • At petition filing
  • At a visa interview
  • Or at a port of entry

Federal agencies responded with guidance while lawsuits were being prepared.

  • USCIS H‑1B Specialty Occupations issued implementation guidance saying the requirement applies to certain new petitions filed on or after September 21, 2025, and drew distinctions based on whether the beneficiary is inside or outside the United States ??.
  • Department of Homeland Security components, including CBP, circulated memoranda with operational direction for officers who would interact with travelers and employers trying to comply with a rapidly issued rule.

Legal pushback: who’s suing and why

State attorneys general have led a major legal challenge, arguing the administration cannot impose a fee of this size via Proclamation and after‑the‑fact memos.

  • Twenty states, including California, joined at least one multi‑state lawsuit challenging the fee.
  • The fear in Democratic‑led states: the policy will hit tech employers, hospitals, and research institutions reliant on H‑1B professionals and could deter talent from choosing U.S. jobs ??.

California’s case:

  • California Attorney General Rob Bonta filed a separate suit in federal court in Massachusetts, joined by Massachusetts Attorney General Andrea Joy Campbell, arguing the fee is illegal.
  • The complaint characterizes the fee as a sudden change that can freeze hiring plans and disrupt family lives when workers and their families rely on visa start dates, spouse employment prospects, or children’s school enrollment.
  • The states seek fast court relief because a fee this large could functionally act like a ban for many employers even if the H‑1B petition process remains technically available.

Business, campus groups, and unions are also litigating:

  • Several suits, including one involving the Chamber of Commerce and universities, are proceeding in federal courts.
  • Possible outcomes include preliminary injunctions, vacaturs, or appeals, all of which would extend uncertainty.

Practical impacts for employers and workers

The litigation and guidance create immediate, concrete dilemmas.

For employers:
– Decisions include whether to file a “new” petition (which could trigger the charge), hold a role open, or move a project abroad.
– Small details like filing dates and beneficiary location can determine whether the fee applies.

For workers:
– Choices include whether to risk travel, schedule a consular interview, or accept a job in another country while the litigation plays out.

? REMINDER

Monitor USCIS guidance and court decisions daily. Small updates can alter filing strategies and budgets, so keep contingency hiring plans ready and communicate timelines to affected departments.

Lawyers and corporate immigration teams are watching agency updates line by line because the costs are immediate and can reshape budgets and hiring plans in days.

Political reactions and public exchanges

Against this tense backdrop, Senator J.D. Vance (Ohio Republican and close Trump ally) criticized the states suing, saying officials in Democratic‑run jurisdictions:

“might try hiring Americans”

Supporters of the Proclamation argue:
– The H‑1B program can be used to undercut U.S. wages, and higher costs might push employers to recruit domestically.

Critics respond:
– The H‑1B system already requires employers to meet wage rules and complete paperwork.
– A flat $100,000 supplemental payment does not assess whether a job could actually be filled locally.

Broader regulatory changes the Proclamation instructs

Beyond the fee, the Proclamation directed agency changes that could reshape the program:

  • Revising prevailing wages — potentially lifting minimum salary figures used in filings.
  • Prioritizing higher‑paid foreign workers — potentially steering opportunities toward large firms and high‑pay markets.

Potential effects:
– Favoring large firms and high‑pay cities.
– Squeezing out start‑ups, public universities, and rural hospitals.
– Impacting patients, students, and communities dependent on specialized workers.

Courts, remedies, and timelines

Federal courts are now the main arena. Remedies under consideration include:

  • Preliminary injunctions — could bar the government from collecting the fee while litigation continues.
  • Vacatur of the policy — could force agencies to unwind guidance already issued.
  • Appeals — likely if lower courts rule, prolonging uncertainty beyond initial hiring and academic cycles.

The lawsuits may produce appellate review, leaving employers to guess whether the Proclamation will remain effective for the full 12 months or be stopped sooner.

Resources and immediate reference

Many companies and institutions are relying heavily on counsel and monitoring agency updates. USCIS maintains an H‑1B information page with program basics at:
USCIS H‑1B Specialty Occupations

Analysis from industry observers (for example, VisaVerge.com) notes the policy has already triggered widespread questions about travel and petition strategy as court challenges develop.

Key facts at a glance

Item Detail
Fee amount $100,000 H‑1B/entry fee
Proclamation date September 19, 2025
Effective date 12:01 a.m. Eastern on September 21, 2025
Scheduled expiration 12 months after effective date (unless extended)
Main directives Revise prevailing wages; prioritize higher‑paid foreign workers
Primary legal challengers 20 states (including California); businesses; universities; unions
Key legal remedies sought Preliminary injunctions, vacaturs, appeals

Takeaway

Vance’s taunt has sharpened political lines, but the decisive actions are likely to come from the courts. Meanwhile, states suing, employers, universities, and workers must plan around a Proclamation that can take effect in hours and reshape budgets in a day, as lawyers seek court orders and the White House defends its actions.

?Learn today
Proclamation
A presidential directive that sets policy or rules; here, it created the H‑1B supplemental fee and related directives.
H‑1B
A U.S. nonimmigrant visa category for specialty‑occupation workers requiring specialized knowledge or a degree.
Preliminary injunction
A short‑term court order that can stop a government action while lawsuits proceed.
Prevailing wage
Salary benchmarks used to ensure foreign workers are paid comparable wages for their occupation and location.

?This Article in a Nutshell

The Sept. 19, 2025 Proclamation imposes a supplemental $100,000 H‑1B/entry fee effective Sept. 21 for many new petitions and directs wage and prioritization changes. Federal agencies issued guidance on timing and beneficiary location, while 20 states, businesses, universities and unions sued, seeking injunctions and vacatur. Courts will decide whether the fee stands, with potential immediate impacts on hiring, travel, research projects, and budgets for employers and foreign workers.

People also ask

Answers from VisaVerge guides
What is the impact of the $100,000 employer fee on certain H-1B petitions implemented by a presidential proclamation?

The $100,000 employer fee on certain H-1B petitions imposed in September 19, 2025, is described as a major budget hit for specialized roles, with large firms absorbing the fee and mid-sized contractors potentially deterred from needed recruitment.

Read: Colorado Employers Scramble as Visa Rules Hit Construction
What is the next step in the legal challenge to the $100,000 H-1B visa fee?

The U.S. Chamber of Commerce filed an appeal at the U.S. Court of Appeals for the D.C. Circuit after the December 23, 2025 district court ruling upheld the proclamation-based fee.

Read: Appeals Court Hears Fight Over $100,000 H-1B Visa Fee
How many lawsuits were filed as of October 21, 2025, challenging the H-1B fee proclamation?

As of October 21, 2025, two lawsuits had been filed to challenge the legality of the H-1B fee proclamation.

Read: Duke Faculty and Staff Face Disruption Under H-1B Restrictions
What is the impact of the $100,000 fee on new H-1B filings after September 21, 2025?

The $100,000 fee applies to certain new H-1B filings after September 21, 2025, but does not affect the immediate steps for students dealing with a terminated SEVIS record due to an H-1B delay this year.

Read: Recovery Steps for Students After H-1B Delay and Cap-Gap Loss
When did the lawsuit challenging Trump's $100,000 H-1B fee for new petitions file?
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Nadia Hassan

Nadia Hassan covers immigration policy and legislation for VisaVerge.com, decoding the bills, executive actions, agency rule changes, and fee structures that reshape the system. With a sharp eye for how Washington's decisions reach ordinary applicants, she translates dense policy into practical context. Nadia's analysis gives readers the "what it means for you" behind every major immigration announcement.

Oliver Mercer

As Chief Editor at VisaVerge.com, Oliver Mercer steers the site's editorial direction with a particular focus on Canadian and Oceania immigration — from Express Entry and provincial programs to Australian and New Zealand visa routes. He curates and edits content, guides the writing team, and safeguards factual accuracy across every article. Under Oliver's leadership, VisaVerge has become a trusted source for clear, comprehensive immigration guidance.

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