8 September 2026 (Navroze Bureau) : US President Donald Trump has backed a proposed new fee on H-1B visa petitions, saying the measure would encourage American companies to hire and train qualified US workers before looking overseas for talent.
Trump highlighted the proposal in his 2026 Labour Day proclamation, linking immigration policy to his broader agenda of boosting domestic employment, manufacturing and economic self-reliance.
New $103,265 H-1B Fee Proposed
The Trump administration has proposed a $103,265 fee for most new H-1B petitions subject to the annual cap, including petitions eligible for the advanced-degree exemption.
The Department of Homeland Security proposal was published in August and is currently subject to a public-comment process. Comments are due by September 24, 2026, meaning the proposed fee is not yet a final rule.
Trump Says Fee Will Prioritise American Workers
In his Labour Day message, Trump said the proposed fee would encourage companies to invest in qualified American workers rather than immediately looking overseas for labour.
The proposal forms part of his wider economic message centred on expanding US manufacturing, protecting domestic jobs and reducing reliance on foreign workers.
Major Implications for Indian Professionals
The proposal is particularly significant for India because Indian nationals make up the largest share of H-1B recipients.
Any substantial increase in employer costs could affect technology companies and other businesses that rely heavily on skilled Indian professionals. It could also influence hiring decisions, salary structures and the willingness of employers to sponsor new foreign workers.
Different From the Earlier $100,000 Fee
The proposed $103,265 charge is separate from the $100,000 H-1B fee introduced by the Trump administration earlier.
A federal judge struck down the earlier $100,000 fee in June, ruling that the administration lacked congressional authority to impose what the court considered an unlawful tax. The administration has indicated it would appeal.
If both measures were ultimately applied, the combined cost could exceed $200,000 per petition, although the legal status of the earlier $100,000 fee remains uncertain.
Why the H-1B Programme Matters
The H-1B programme allows US employers to hire foreign workers in specialised occupations, particularly in sectors such as technology, engineering, healthcare, research and academia.
Indian professionals have historically been major beneficiaries of the programme, especially in the US technology sector.
Employers Could Face Higher Hiring Costs
A six-figure fee could significantly increase the cost of sponsoring an H-1B worker.
Supporters of the proposal argue that higher costs could discourage companies from using foreign labour when qualified Americans are available. Critics, however, warn that higher fees could make it harder for businesses, universities and healthcare institutions to access specialised talent.
Proposal Still Under Review
The $103,265 fee remains a proposal, not an immediately applicable charge.
The DHS has opened the measure to public comments, after which the administration would need to decide whether and how to finalise the rule.
Labour Day Message Fits Trump’s Broader Agenda
Trump’s decision to highlight H-1B fees in his Labour Day proclamation reflects his broader focus on protecting American workers.
The proclamation also highlighted tariffs, manufacturing investment and efforts to bring production back to the United States as part of his economic agenda.
What It Could Mean for Indian Workers
For Indian professionals aspiring to work in the US, the proposal could make employers more selective about H-1B sponsorship.
The biggest impact would likely fall on new cap-subject applicants and the companies sponsoring them, while the exact effect will depend on the final rule and the legal status of related H-1B measures.