In a major relief for Indian professionals and students in the United States, the Donald Trump administration has issued detailed clarifications on exemptions to the recently introduced $100,000 H-1B visa fee, following weeks of confusion and concern.
The United States Citizenship and Immigration Services (USCIS) released new guidance outlining who must pay the fee, how payments should be made, and which applications qualify for exemptions. The clarification aims to address uncertainty created by a presidential proclamation issued in September.
The proclamation, introduced on September 19, imposes a $100,000 annual fee, approximately ₹90 lakh, on employers sponsoring skilled foreign workers under the H-1B program. It applies to petitions filed on or after 12:01 a.m. EDT on September 21, 2025, for beneficiaries outside the United States without a valid H-1B visa.
“The Proclamation applies to new H-1B petitions filed at or after 12.01 am eastern daylight time on September 21, 2025, on behalf of beneficiaries who are outside the United States and do not have a valid H-1B visa,” said the USCIS statement.
“The Proclamation also applies if a petition filed at or after 12:01 a.m. eastern daylight time on September 21, 2025, requests consular notification, port of entry notification, or pre-flight inspection for an alien in the United States.”
Who must pay and who is exempt
According to USCIS, employers sponsoring foreign workers based outside the U.S. are responsible for paying the $100,000 fee when submitting petitions. The agency has launched an online portal to facilitate payments. The fee cannot be passed on to employees, a restriction that could impact hiring decisions, industry experts warned.
Crucially, the fee will not apply to “change of status” cases, such as international students on F-1 visas moving to H-1B employment, or to individuals already residing in the U.S. under valid visa categories.
The proclamation “does not apply to any previously issued and currently valid H-1B visas, or any petitions submitted before 12:01 a.m. ET on September 21, 2025,” the agency clarified.
Existing H-1B holders can continue traveling in and out of the United States without restriction. The exemption also extends to those applying for renewals or extensions.
Why does this matter for Indians?
The decision provides much-needed reassurance for Indian professionals, who make up about 70% of all H-1B visa holders, roughly 300,000 people currently working in the U.S. Most are employed in technology and services sectors, which rely heavily on this visa category to meet workforce demands.
The H-1B visa allows highly skilled foreign workers to live and work in the U.S. for up to three years, extendable to six. Each year, 85,000 new visas are granted through a lottery system. Before the proclamation, visa-related fees typically ranged from $215 to $5,000, depending on employer size and type.
Analysts said the $100,000 fee would have made the program prohibitively expensive for many firms, particularly smaller employers, as it exceeded the annual salaries of some entry-level workers.
Impact on the Indian-American community
For decades, the H-1B visa has been a key pathway for Indian middle-class mobility, enabling thousands to settle and build careers in the U.S. Researchers behind The Other One Percent, a study on Indian-Americans, found that the program has helped make the community one of the most educated and highest-earning in the country.
Indian IT firms such as Infosys, Tata Consultancy Services (TCS), and Wipro, along with American giants like Amazon, Google, and Microsoft, have long depended on H-1B professionals, many of whom are Indian graduates from U.S. universities.
Political fallout
The Trump administration has defended the steep fee as a measure to “protect American workers.”
U.S. Commerce Secretary Howard Lutnick said the policy aims to attract “high earners” and discourage companies from bringing in “low earners who take jobs from Americans.” He added that although H-1B quotas remain unchanged, “there’ll just be less of them issued.”
The Indian government said it is examining the policy’s implications. Prime Minister Modi, speaking in Gujarat, reiterated his message of self-reliance, saying India’s “only real enemy is dependence on other countries.”
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