Overview

• A coalition of unions, employers, healthcare and religious groups filed suit in the Northern District of California seeking to block the new $100,000 charge on first‑time H‑1B petitions.
• The complaint argues the proclamation exceeds presidential authority, effectively functions as an unauthorized tax, and invites arbitrary treatment through a vague exception process.
• The University of Southern California advised H‑1B faculty and staff to postpone international travel and told those abroad to return before the proclamation’s effective date.
• The one‑time surcharge applies to new petitions filed on or after September 21, 2025 for a planned 12‑month period, with existing H‑1B holders, renewals and certain amendments exempt.
• Separately, DHS has proposed prioritizing higher‑wage H‑1B petitions when applications exceed the cap, a shift drawing warnings from startups and concern from international students about hiring and loan repayment prospects.