California v. Noem
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Overview
Overview
A coalition of states sued the Trump administration over the changes to the H-1B visa program which would require the employers of workers on a H-1B visa to pay the federal government $100,000.
The Issue
Issue
Whether the Trump administration's H-1B visa program modification requiring employers to pay $100,000 per visa holder violates the Administrative Procedure Act, exceeds executive authority, or is otherwise unlawful.
The Rules
Rule
Under the Administrative Procedure Act, 5 U.S.C. § 706, agency action may be set aside if it is arbitrary and capricious, an abuse of discretion, or contrary to law. Executive immigration policy is generally subject to deference, but must remain within statutory bounds and follow required procedural processes.
The Application
Analysis
The plaintiff states challenge the H-1B fee increase as potentially exceeding the Secretary's statutory authority under immigration law and as insufficiently justified under APA standards. The administration must demonstrate the policy is rationally connected to stated objectives and was adopted through proper procedures.
The Conclusion
On June 8, 2026, Judge Leo T. Sorokin granted the plaintiff states’ motion for summary judgment and denied the defendants’ cross-motion. The court declared unlawful and vacated in its entirety, under the Administrative Procedure Act, the policy implementing the September 19, 2025 Proclamation that imposed a $100,000 payment requirement on new H-1B visa petitions, and it entered judgment for the twenty plaintiff states. The court declined to issue a separate permanent injunction because complete vacatur already afforded full relief, and it dismissed the claims against the Department of Justice, the Attorney General, the Department of Labor, and the Secretary of Labor without prejudice at the parties’ request. The defendants appealed to the First Circuit (No. 26-1699), and the district court denied their motion to stay the judgment pending appeal.
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