H-1B Visas: Is the Trump Administration’s Proposed $100,000 Supplementary Fee on H-1B Applications Legally Tenable?
H-1B Visas: Is the Trump Administration’s Proposed $100,000 Supplementary Fee on H-1B Applications Legally Tenable?
Attorneys:Attorney Jeff Zhengquan Xie,Attorney Jiarui Yin,Attorney Qian Zhao,Attorney Haochun Ling
I. Background
On September 19, 2025, U.S. President Donald Trump signed a presidential proclamation titled Restriction on Entry of Certain Nonimmigrant Workers. This proclamation imposes unprecedented restrictions on the H-1B work visa program, requiring employers to pay a $100,000 fee when filing H-1B applications or facilitating the entry of H-1B employees. Additionally, employers must provide and verify that they are paying the prevailing wage; failure to do so will result in visa rejection or entry denial. The proclamation took effect two days after its signing.
This move quickly sparked widespread attention and controversy. Employers expressed concerns over cost burdens and compliance risks, immigration attorneys questioned the policy’s legality, and academic circles and public opinion generally opined that the proclamation is likely to face serious judicial challenges.
II. Legal Basis Cited by the President
The proclamation invokes two key provisions of the Immigration and Nationality Act (INA):
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INA § 212(f) (8 U.S.C. § 1182(f)): Grants the President the authority to prohibit or restrict the entry of any class of aliens if their entry is deemed "detrimental to the interests of the United States."
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INA § 215(a) (8 U.S.C. § 1185(a)): Empowers the President and the Secretary of Homeland Security to impose conditions and restrictions on the entry of aliens and the issuance of visas.
The White House maintains that this proclamation falls within the President’s broad discretionary authority in matters of "national interest" and "labor market protection."
III. Potential Legal Issues
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Exceeding Congressional Legislative Authority
While § 212(f) confers broad powers on the President, its core purpose is "entry restriction"—not authorizing the President to establish a substantive new fee regime. Congress has historically set visa application fees and immigration-related charges through specific legislation. By imposing a $100,000 fee via presidential proclamation, the administration may be engaging in de facto "legislation," exceeding presidential authority and violating the principle of separation of powers.
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Violating the Major Questions Doctrine
In recent years, the Supreme Court has emphasized that policy changes with significant economic and social implications must be explicitly authorized by Congress. Drastically increasing H-1B entry costs and altering wage benchmarks clearly qualify as "major questions." Whether INA § 212(f) can be interpreted as authorizing the President to implement such large-scale economic interventions will be a central focus of judicial review.
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Procedural Deficiencies and the Administrative Procedure Act (APA)
If the implementing details of the proclamation (e.g., fee collection methods, wage verification standards) require rulemaking by administrative agencies, the notice-and-comment rulemaking process under the APA is mandatory. Should the government attempt to bypass these procedures by relying solely on the proclamation, courts may deem the action "arbitrary and capricious."
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Conflicts with Existing Law
Provisions such as INA § 212(n) already clearly stipulate employers’ wage obligations for H-1B positions. If the presidential proclamation imposes additional wage benchmarks or fee requirements, it may directly conflict with existing legislation. Under established precedents (e.g., RAICES v. Noem), courts generally do not allow the President to use § 212(f) to override or circumvent immigration systems explicitly established by Congress.
IV. Prospects for Judicial Review
Judicially, potential plaintiffs may include affected employers, industry associations, and prospective H-1B applicants. These parties have legal standing, as the proclamation will cause them concrete economic harm. Courts will focus their review on the following key points:
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Whether the President’s actions fall within the scope of "entry restrictions," or exceed authority and encroach on legislative domains reserved exclusively for Congress.
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Whether the $100,000 fee constitutes a "tax" or a "major economic measure," which would more likely trigger the Major Questions Doctrine and require explicit congressional authorization.
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Whether there are procedural violations under the APA and direct conflicts with existing laws.
The historical precedent Trump v. Hawaii upholds the President’s broad use of § 212(f), but that case involved nationality-based restrictions and national security—rather than large-scale economic measures. Courts are likely to adopt a more cautious stance toward such "overreaching" initiatives.
V. Projections
Based on legal commentary and historical precedents, we offer the following assessment of the proclamation’s "ultimate fate":
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Short term: Federal courts are likely to see lawsuits filed quickly, and may issue a Temporary Restraining Order (TRO) or preliminary injunction to block full implementation of the proclamation pending litigation.
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Medium term: Certain provisions—particularly the $100,000 fee requirement—may be ruled invalid, as they most clearly exceed presidential authority and conflict with congressional legislation.
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Long term: If the case is appealed to the Supreme Court, the Court may uphold the President’s authority under § 212(f) to impose certain entry restrictions, but there is significant risk that provisions related to economic fees and wage standards will be deemed ultra vires (beyond legal authority). The final outcome may be:
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Partial invalidation of the proclamation: The fee and wage-related provisions are struck down;
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Partial preservation of the proclamation: The President retains limited authority under § 212(f) to control certain H-1B entries, but is prohibited from unilaterally establishing new fee regimes.
In conclusion, while President Trump’s Restriction on Entry of Certain Nonimmigrant Workers responds politically to domestic calls for labor market protection, it is legally vulnerable. The President’s authority under § 212(f), though broad, is not unlimited—especially when measures encroach on congressional prerogatives over fee-setting and labor standards. Courts will likely invalidate portions of the proclamation, and its ultimate fate is probable to be significantly weakened or partially repealed.
The above overview is prepared by XIE LAW OFFICES,LLC. to provide legal information to the Chinese community. It is primarily for academic discussion purposes and does not constitute legal advice on specific cases. If you already have legal representation, please consult your own attorney, who is familiar with the details of your case. Clients of Xie & Associates Law Firm, as well as readers who have not yet retained legal counsel, may contact Attorney Xie for specific legal questions. If you wish to reprint this document, please do so in full without any deletions, and clearly indicate the source.
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