Saturday, September 20, 2025

The American Dream Downtrodden in the Details: Why the New H-1B Fee Won't Survive Legal Scrutiny


Growing up, I heard many stories about the American Dream from my parents, who arrived in the United States from Nigeria in the 1980’s on student visas. It seems, based on their stories, that back then the pathway to permanent residency was clearer and far less contentious. While my parents never participated in the H-1B program - it wasn't created until 1990 – one fundamental truth remains: America's strength has always come from welcoming those who seek to contribute, whether through student visas in the 1980s or H-1B visas today.

The ties that bind us as humans should bring us closer together, not drive us apart. This growing divide in the country feels pointless when we consider that most of the issues raising dissent have common ground solutions. Instead of creating barriers to entry through exorbitant fees, the system could be fine-tuned, making it more equitable while still protecting American wages and jobs, and preserving the talent that seeks to call America home.

If care is not taken, America risks accelerating a talent exodus that will diminish its competitive advantage for years to come. True national security comes from economic strength and innovation leadership, not from pricing out the very minds that have driven American breakthroughs in medicine, technology, and research. Is America really the land of the free and the home of the brave if it cowardly retreats behind prohibitive barriers instead of competing on merit and opportunity?

Why This Rule Cannot Stand

The recently announced $100,000 H-1B entry fee represents more than just bad policy, it's likely illegal. Any legal challenge to this proclamation would have strong grounds for securing a preliminary injunction based on three compelling arguments.

1. Likelihood of Success on the Merits

Administrative Procedure Act Violations

The most apparent legal flaw lies in the process itself. Rather than issuing a Presidential Proclamation late on Friday, September 19th, to take effect just two days later Sunday, September 21st, such a drastic rule change should have been published as a proposed regulation in the Federal Register with opportunity for public notice and comment, as required by the Administrative Procedure Act (APA).

The APA mandates that proposed regulations be published, allowing the public and affected parties to submit comments. The government would then review all comments and respond when creating the final regulation. This proclamation's complete bypass of the notice-and-comment process constitutes a clear APA violation and renders the rule arbitrary, capricious, and not in accordance with law. Of course, the government’s retort could hinge on the Proclamation being in the interest of national security, but if the grounds for such national security concerns are solely based on what is written in the Proclamation, such retort would not pass muster. More on this in the next paragraph.

Existing Legal Framework Already Addresses Concerns

The Proclamation's justifications are hollow when examined against existing law. We already have extensive provisions that require employers pay prevailing wages specifically to protect against depression of wages and working conditions for U.S. workers. Moreover, enforcement mechanisms are already in place, including investigations by USCIS's Fraud Detection and National Security (FDNS) unit and administrative proceedings by the Department of Labor's Wage and Hour Division.

Statutory Fee Limitations

Perhaps most alarming is the Proclamation's violation of INA Section 286(m) (8 U.S.C. 1356(m)), which is interpreted to state that immigration fees cannot exceed the amount needed to recover the costs of adjudication. A $100,000 fee bears no rational relationship to processing costs and clearly violates this statutory mandate.

2. Irreparable Injury

Demonstrating irreparable harm should be straightforward. The $100,000 per-employee fee is financially devastating for small and medium-sized businesses, colleges, universities, and nonprofits. Many organizations simply cannot absorb such costs, meaning they will lose access to employees with critical expertise, knowledge, and experience.

The ripple effects would run rampant: businesses will lose revenue, innovation will stagnate, research will suffer, and technological development will slow. For startups and emerging companies, this fee could prove fatal. Universities conducting cutting-edge research will find themselves unable to attract international talent essential to maintaining America's competitive edge.

3. Public Interest

The government will struggle to argue that this policy serves the public interest. The proclamation relies on unsupported nativist arguments that H-1B workers "take jobs" from U.S. workers, claims that ignore decades of economic research showing the job-creating and wage-enhancing effects of skilled immigration.

America's economic dominance stems partly from its ability to attract and retain global talent. This fee doesn't protect American workers; it rather weakens American competitiveness while other nations eagerly welcome the innovators, researchers, and entrepreneurs it is turning away.

The Bigger Picture

This proclamation represents more than immigration policy; it's a fundamental question about America's identity. The legal arguments against this fee are strong, but the moral questions echo louder. America has always been at its best, it has embraced talent from around the world, recognizing that diversity of thought and experience drives innovation and prosperity.

The American Dream my parents pursued in the 1980s shouldn't become a luxury item available only to those who can afford a six-figure entry fee.

This rule won't survive legal scrutiny, and it shouldn't survive our moral scrutiny either. 


P.S. If you found this blog post insightful and want to hear me yap more about this topic, I'm giving a talk in collaboration with Immigration Question on Wednesday, September 24. Register here 



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