Second Federal Court Halts President Trump’s $100,000 H-1B Visa Fee

A federal judge in California has blocked President Donald Trump’s $100,000 fee on new H-1B visas for highly skilled foreign workers. U.S. District Judge Haywood Gilliam granted a preliminary injunction in part, stopping U.S. agencies from enforcing specific sections of a presidential proclamation that required employers to pay the heavy fee for noncitizens outside the country.

This ruling marks the second time a federal court has enjoined the policy, following a similar block by a federal court in Massachusetts earlier. The lawsuit was brought by a coalition of healthcare, educational, and religious organizations, alongside immigrant-rights groups, who argued the fee threatened critical workforce shortages.

Arguments from the Plaintiffs and Government

The organizations challenging the fee highlighted the essential role that H-1B visa holders play in American productivity growth. They pointed out that foreign professionals help address shortages of healthcare providers for an aging population, fill gaps for teachers and foreign-language instructors, and provide vital pastoral and missionary services.

Conversely, the government defended the fee by arguing that the H-1B program is vulnerable to abuse. Government attorneys maintained that the program can displace qualified American workers while undermining both the national economy and national security.

Court Findings and Rulemaking Requirements

In his decision, Judge Gilliam concluded that the court has the authority to review the immigration policy as a potentially unauthorized exercise of delegated authority under the Immigration and Nationality Act. Furthermore, the court determined that the plaintiffs are likely to succeed on their claims that agencies failed to comply with necessary procedural requirements.

The preliminary injunction will remain in place until the Department of Homeland Security completes proper notice-and-comment rulemaking under the Administrative Procedure Act. Additionally, DHS must conduct analyses regarding the proposed rule’s impact on small businesses under the Regulatory Flexibility Act.

What This Means for Employers and Organizations

For organizations relying on foreign talent—such as schools, religious institutions, and healthcare providers—the ruling halts the immediate financial burden of the $100,000 requirement for petitions filed on behalf of individuals outside the United States. Employers do not currently have to pay this fee while the injunction holds, though the administration previously extended the original proclamation for another year and DHS has previously proposed a similar rule.

Organizations should monitor federal agency actions closely to see how DHS complies with the court-ordered rulemaking procedures. Those navigating complex hiring needs or facing uncertainty regarding international recruitment may benefit from consulting an immigration attorney to understand how these evolving administrative steps impact their operations.

This article is general information based on JURIST and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 4, 2026.