US Clarifies $100K H-1B Fee Exemption for Existing Visa Holders

US Clarifies $100K H-1B Fee Exemption for Existing Visa Holders

BIG RELIEF

Thousands of skilled professionals and international students can finally breathe easy. The U.S. Citizenship and Immigration Services (USCIS) has clarified that President Donald Trump’s proposed $100,000 H-1B visa fee will not apply to existing visa holders or those changing their visa status within the country.

According to the clarification, the hefty fee will only affect new H-1B applicants filing petitions from outside the United States. This update has been widely seen as a major relief for the Indian IT community, which accounts for nearly 70% of all H-1B visa holders in the U.S.

(Source: Livemint)


BACKGROUND: THE $100,000 H-1B VISA FEE

In September 2025, the Trump administration announced a new rule mandating employers to pay a one-time $100,000 fee for each new H-1B visa petition. The White House described the move as an effort to “protect American workers” and reduce reliance on foreign labor.

However, the announcement caused panic among thousands of professionals, students, and U.S. companies that rely heavily on skilled foreign employees. Many feared that even visa extensions, amendments, or status changes — such as switching from student (F-1) or intra-company transfer (L-1) to H-1B — would fall under the new rule.

(Source: White House)


WHO IS EXEMPT

The USCIS has now issued official guidance explaining who will not have to pay the new fee.

Exempted categories include:

  • Individuals already holding valid H-1B visas issued before the rule took effect.
  • Petitions filed before 12:01 a.m. EDT on September 21, 2025.
  • Those changing visa status within the U.S., such as from F-1 or L-1 to H-1B, without traveling abroad.
  • Extensions and amendments for existing H-1B visa holders working in the United States.

This means foreign students graduating from U.S. universities and applying for an H-1B job from within the country will not be impacted.

(Source: India Today)


WHO WILL PAY THE FEE

The new $100,000 charge will apply to:

  • New H-1B applicants based outside the U.S. who do not already hold an H-1B visa.
  • Petitions requesting consular processing or visa stamping outside the U.S.
  • Cases where the applicant departs the U.S. before adjudication and must reapply from abroad.

This approach aligns with Trump’s immigration stance of prioritizing domestic workers and discouraging fresh foreign hiring from overseas markets.

(Source: Murthy Law Firm)


IMPACT ON INDIAN TECH WORKERS

India is the largest source of H-1B talent, with thousands of IT professionals working for U.S. tech giants and Indian firms like Infosys, TCS, and Wipro. The clarification provides significant comfort to these professionals and their employers, who feared major cost increases.

Industry experts note that while the rule won’t hurt existing H-1B workers, it could make it harder for new applicants abroad to find sponsorships, as U.S. companies might hesitate to pay such high fees for foreign hires.

(Source: Hindustan Times)


LEGAL CHALLENGES AND FUTURE UNCERTAINTY

The U.S. Chamber of Commerce and several tech industry groups have already filed lawsuits against the new policy, calling it “discriminatory and economically damaging.” They argue that the rule violates existing immigration statutes and could harm the competitiveness of American businesses.

USCIS, however, maintains that the fee targets only new visa petitions from abroad and is designed to ensure that U.S. employers prioritize domestic workers first. Legal experts say the lawsuits may take months to resolve, leaving many employers uncertain about how to proceed with global hiring.

(Source: AP News)


WHAT’S NEXT

For now, students and professionals already in the U.S. remain safe from the $100,000 charge. But for those applying from outside the country, the rule is likely to make the H-1B pathway more expensive and competitive.

Immigration attorneys are advising applicants to monitor official USCIS updates and avoid misinformation spreading online. Employers, meanwhile, are exploring alternative visa routes and remote work solutions to cope with potential cost hikes.

(Source: Times of India)


If you’re already in the U.S. — or switching status from F-1 or L-1 to H-1B — Trump’s $100,000 H-1B visa fee won’t apply to you. Only new applicants from outside the country will face the charge. For now, that’s a huge relief for thousands of professionals and U.S. employers alike.

(Source: Politico)

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