Representative imageA cross-section of organisations representing health care providers, academicians, educational institutions, religious organisations, and individuals (including an Indian citizen currently residing in California) jointly filed a lawsuit on Friday challenging President Trump’s recent proclamation, that barred H-1B holders from entering the US unless their employer coughed up an entry fee of $100,000.The lawsuit filed in the district court (Northern District of California) argues that Trump cannot “rewrite” the statutory H-1B fee structure overnight or impose new taxes by proclamation, and that the vague “national-interest” exemption invites “arbitrary, pay-to-play decisions.”H-1B Visa Shock Explained: $100K Annual Fee Announced by Donald TrumpThe plaintiffs argue that the proclamation is unconstitutional, violates the Administrative Procedure Act (APA), which calls for a detailed process that includes inviting comments from the public and review of the same and rewrites rules set by the US Congress.The proclamation, announced on September 19 and enforced just 36 hours later on September 21, plunged American employers and H-1B workers into uncertainty and confusion. With Indians being major recipients of the H-1B lottery, the announcement hit hard as thousands were all set to resume their new jobs in America for the fiscal year starting October 1. The proclamation led many companies recalling their current H-1B employees, who were all set to board their flights for a vacation.Presumably the threat of immediate litigation coupled with angry voices from Corporate America forced the Trump administration to partially roll back its stand. A day later immigration agencies clarified that the entry fee would not apply to existing H-1B visa holders or those with approved applications. For those subject to the H-1B cap lottery it would kick in only next lottery season – spring of 2026.The bottom line – the entry fee remained. All new H-1B petitions filed after Sept 21 would be subject to this fee. This lawsuit, the first to challenge the proclamation, points out that the H-1B visa program was created by the US Congress to provide a critical path for America to attract highly skilled professionals from around the world to fill urgent needs in the economy and public services to strengthen American innovation. Under the H-1B program, US employers can hire qualified foreign talent such as doctors, nurses, engineers, teachers, and researchers but after a rigorous review process.The plaintiffs want the court to declare Trump’s proclamation as unlawful and unconstitutional and to stop the enforcement of the entry fee on new H-1B applications. They are seeking a temporary restraining order and/or preliminary injunction so the proclamation cannot be applied while the case is being litigated. They also ask the court to vacate any related guidance issued by the government agencies which have been implementing the proclamation.Without relief, hospitals will lose medical staff, churches will lose pastors, classrooms will lose teachers, and industries across the country risk losing key innovators. The lawsuit asks the court to immediately block the proclamation and restore predictability for employers and workers.It requests the court that the US Citizenship and Immigration Services (USCIS) and the Department of State should be required to process H-1B petitions filed after the prescribed date, under the pre-existing statutory fee structure – without the entry fee.The proclamation has wide ranging global implications and developments in this lawsuit, ‘Global Nurse Force et al v Trump et al’ will be keenly followed. Global Nurse Force, a California-based staffing company that has placed more than 10,000 nurses at over 175 hospitals worldwide, submitted in court filings that the six-figure fee will immediately halt international nurse recruitment, force it to shut down its US operations, and worsen hospital staffing shortages—particularly harming ICUs, emergency rooms and surgical units, with outsized impacts on rural and inner-city communities.One Louisiana health-system client that had selected over 200 nurses through Global Nurse Force told the court it cannot afford the additional cost of $100,000 per nurse and this will leave critical positions vacant. Many hospitals affected are non-profits operating on thin margins and say the extra cost will amount to millions of dollars per hiring cycle, driving up patient wait times and jeopardizing care.The plaintiffs are represented by several advocacy groups, including Democracy Forward and the South Asian American Justice Collaborative (SAAJCO); and IMMpact litigation (a joint venture of four law firms: Siskind Susser; Kuck Baxter; Joseph & Hall; and Bless Litigation).Kalpana V. Peddibhotla, executive director, SAAJCO, said: “South-Asians make up the majority of H-1B workers and are part of the fabric of America, staffing rural hospitals, advancing lifesaving research, and driving innovation in businesses across the country. This unlawful fee threatens workers, their families, and the financial and social wellbeing of the communities in which they live.”Skye Perryman, President and CEO of Democracy Forward, added: that H-1B workers keep rural hospitals staffed, advance lifesaving medical research, keep America’s tech sector competitive, and help small businesses thrive. Trump cannot impose a six-figure immigration ransom by fiat – this exorbitant fee invites corruption and is unlawful, destabilizing, and bad for everyone.Commenting on the lawsuit, Jesse Bless, Member, IMMpact Litigation said, “it’s about our America and the preservation of our amazing workforce of talented individuals from around the world.”