Trump backs proposed $103,265 H-1B fee in Labour Day message

US President Donald Trump has used his Labour Day proclamation to endorse a proposed $103,265 fee on certain H-1B visa petitions, arguing that the measure would encourage American companies to hire and train US workers before turning to foreign talent.

“To ensure we are hiring and training American workers, we are proposing a new fee on H-1B visa petitions that will encourage companies to invest in qualified Americans before looking overseas for labour,” Trump said in the proclamation issued on Monday, 7 September, local time.

The reference to H-1B visas placed the politically sensitive immigration programme at the centre of Trump’s Labour Day message, which otherwise focused on American manufacturing, trade, tariffs and protecting domestic jobs.

The H-1B programme is widely used by US technology companies and other employers to hire highly skilled foreign professionals. Indian nationals have historically made up the largest group of H-1B beneficiaries, making any changes to the programme closely watched in India and among Indian professionals in the US.

The fee cited by Trump is not a new levy that took effect on Labour Day.

The US Department of Homeland Security last month proposed a $103,265 fee for H-1B petitions subject to the annual numerical cap, including petitions eligible for the advanced-degree exemption. Under the proposed rule, the fee would be payable when the petition is filed and would come on top of other applicable immigration fees.

The proposal is being pursued through the federal rulemaking process and has not yet taken effect. Employers therefore are not currently required to pay the $103,265 amount simply because of Trump’s Labour Day proclamation.

The administration has said the proposed fee would help cover federal costs associated with administering the lawful immigration system.

Trump presented the proposed H-1B fee as part of a broader economic strategy focused on prioritising American workers.

“After decades of disastrous trade policies that surrendered our industrial strength to foreign nations, companies are now returning home, investing trillions of dollars into the United States economy, and adding over 900,000 American jobs,” Trump said.

He also credited his “protective tariffs” with shielding US workers from foreign competition and said American manufacturing had expanded for six consecutive months.

“Our Nation is entering a bold new era of American manufacturing, technological innovation, and economic prosperity -- powered by the might of the American worker,” Trump said.

The proclamation formally designated 7 September as Labour Day and called on Americans to honour the contributions and resilience of workers.

The latest proposal follows a separate attempt by the Trump administration to impose a $100,000 fee on new H-1B visas.

A federal judge in Massachusetts struck down that fee in June, finding that the administration had exceeded its authority. In July, a federal appeals court rejected the administration’s request to suspend the ruling while the legal challenge continues.

Unlike that measure, the new $103,265 fee is being pursued through the federal rulemaking process. It applies to cap-subject H-1B petitions and remains a proposed rule, meaning the fee is not currently being collected.

With IANS inputs