H-1B $100,000 fee lawsuit: Plaintiffs seek fast ruling, Trump govt wants pause
Synopsis
Key Takeaways
Employers and workers challenging the Trump administration's $100,000 fee on new H-1B visa petitions have urged a federal court in California to push quickly toward a final judgment, while the government is pressing to freeze the case until a federal appeals court weighs in. The legal standoff intensifies pressure on a fee that has disrupted hiring pipelines for thousands of Indian-origin workers and US employers dependent on skilled foreign labour.
What the Case Is About
The lawsuit, Global Nurse Force v. Trump, directly challenges the legality of a $100,000 payment requirement imposed as a condition for processing H-1B visa petitions and permitting entry into the United States. In a joint case management statement filed on 20 October 2026, plaintiffs stated they contest the lawfulness of this fee requirement outright.
The fee was originally imposed by President Donald Trump through Proclamation 10973, signed on 19 September 2025, and subsequently extended through Proclamation 11069 on 18 September 2026.
Key Ruling and Government Appeal
On 30 September 2026, Judge Gilliam granted the plaintiffs' motion for a preliminary injunction in part, denied the government's motion to dismiss, and declined class certification without prejudice. The government moved swiftly, appealing to the Ninth Circuit Court of Appeals on 9 October 2026, and on the same day filed a motion to stay the district court proceedings. That stay motion is scheduled for a hearing on 14 January 2027.
The Competing Timelines
Plaintiffs have proposed that the government produce the administrative record by 3 November 2026, and warned they are 'monitoring Defendants' compliance' with the court's 30 September 2026 order, adding that they 'may seek enforcement of the order if warranted.' The government, by contrast, argued that proceeding now would be wasteful, maintaining that 'further motions practice is inappropriate while the Ninth Circuit considers threshold jurisdictional issues.' It proposed producing the record only 30 days after the appeals court's mandate, or 30 days after any order denying the stay.
Broader Litigation Landscape
The government also pointed to a universal injunction issued by the District of Massachusetts in a separate proceeding, arguing that further litigation in California 'only wastes the Parties' and Court's resources, and might well result in a duplicative appeal.' Two additional appeals on the same fee are pending: California v. Mullin in the First Circuit, and Chamber of Commerce v. DHS in the DC Circuit, which was argued on 9 March 2026.
The core legal questions across these cases, both parties acknowledged, are whether the president's proclamation and its extensions are ultra vires — beyond executive authority — and whether implementation actions by the State Department and the Department of Homeland Security (DHS) violate the Administrative Procedure Act (APA).
Who Is Fighting the Fee
The plaintiffs are represented by a coalition that includes the Justice Action Center, Democracy Forward, the South Asian American Justice Collaborative (SAAJCO), and the law firm Cohen Milstein Sellers & Toll. The case has drawn significant attention from the South Asian-American community and tech industry employers who rely heavily on H-1B talent pipelines. A final court ruling, whichever way it goes, is expected to have widespread implications for US immigration and workforce policy.