H-1B Rule Faces New Challenge as U.S. Chamber of Commerce Files Federal Lawsuit

On October 16, the U.S. Chamber of Commerce filed a federal lawsuit in the U.S. District Court for the District of Columbia challenging the presidential proclamation issued on September 19. The proclamation restricts the entry of certain H-1B nonimmigrants and requires employers to pay an additional $100,000 fee per worker. This marks the second federal lawsuit filed against the proclamation and the associated fee.

According to the proclamation, beginning September 20, 2025, H-1B professionals subject to this policy will be barred from entering the United States unless their employers pay the $100,000 fee, qualify for a national interest exception, or otherwise fall outside the scope of the rule. Although the administration has since issued limited guidance clarifying the policy’s scope, many key questions remain unresolved.

The complaint argues that the proclamation unlawfully attempts to override the H-1B visa framework established by Congress, exceeds the President’s statutory authority to suspend or restrict entry of foreign nationals, and lacks sufficient factual justification to demonstrate that the entry of H-1B workers would harm U.S. interests. The plaintiffs also allege that the implementing actions taken by federal agencies violate the Administrative Procedure Act (APA).

This lawsuit follows the case filed earlier in the Northern District of California, which also challenges the proclamation on related but distinct legal grounds. In the coming weeks, plaintiffs in one or both cases are expected to seek a preliminary injunction or other interim relief.

At present, the H-1B proclamation and the $100,000 fee requirement have not yet been implemented. The final outcome, whether by court order or administrative decision will have a direct impact on employers and foreign professionals. Our office will continue to monitor and provide updates as this litigation develops.