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In a major relief for Indian professionals and students, the US has exempted the controversial $100,000 H-1B visa fee. What does this sudden reversal mean for tech workers and international graduates in the country?
US announces exemptions to H-1B visa fees.
Washington: In a significant relief for Indian professionals and international students in the United States, the US Citizenship and Immigration Services (USCIS) has announced that the recently proposed $100,000 H-1B visa fee will not apply to existing visa holders or international graduates already in the country.
The clarification comes after widespread confusion and concern following the fee announcement by the Trump administration last month.
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Last month, the Trump administration had introduced a steep annual fee of $100,000 (around ₹90 lakh) for employers sponsoring technically skilled foreign workers under the H-1B visa program.
The new fee was scheduled to take effect from 12:01 am. ET on September 21, 2025, causing panic among Indian workers, US employers, and immigration attorneys.
The fee represented a drastic increase over existing visa application costs, which range between $215 and $5,000 depending on company size and visa category. Analysts had pointed out that the $100,000 fee would have been 20 to 100 times higher than current costs, surpassing the median annual salary of many new H-1B workers.
In its latest guidance, USCIS clarified that the fee does not apply to anyone already in the United States on a valid visa. This includes:
Current H-1B visa holders seeking renewals or extensions
F-1 student visa holders planning a change of status
L-1 intra-company transferees
“The proclamation does not apply to any previously issued and currently valid H-1B visas, or any petitions submitted prior to 12:01 a.m. ET on September 21, 2025,” USCIS officials stated.
The agency also confirmed that H-1B holders can continue traveling in and out of the United States without restriction, addressing concerns about potential travel disruptions following the fee announcement. International students transitioning to H-1B employment under a change-of-status application will likewise be exempt from paying the new fee.
The announcement is particularly significant for Indian professionals, who constitute the largest group of H-1B visa holders. Currently, around 300,000 Indian workers are in the U.S. under the H-1B program, mainly employed in the technology and services sectors.
Indians account for roughly 70% of all new H-1B allocations, followed by Chinese nationals at 11–12%, according to U.S. administration data. The H-1B visa allows highly skilled workers to live and work in the United States for up to three years, with the possibility of an extension for another three years. Each year, 85,000 new H-1B visas are awarded through a lottery system.
The USCIS clarification has been welcomed by employers, immigration attorneys, and the large Indian tech workforce, many of whom had expressed fear of losing employment opportunities or being unable to afford the unprecedented fee.
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Industry experts noted that without the exemption, the new fee could have drastically impacted recruitment and retention of skilled Indian workers in the U.S., while also discouraging international students from pursuing careers in technology and related sectors.
The US administration’s exemption of the $100,000 H-1B visa fee for existing and incoming foreign professionals provides a major reprieve for Indian workers and students.
With the clarification in place, thousands of skilled professionals can continue their work and studies in the US without facing the financial burden of the proposed fee, ensuring continuity for both employees and employers in the critical technology sector.
