In a major clarification that brings relief to thousands of Indian students and professionals, the Donald Trump administration has issued detailed guidance on the controversial $100,000 H-1B visa fee introduced through a presidential proclamation in September. The United States Citizenship and Immigration Services (USCIS) has confirmed that the hefty fee will not apply to change-of-status cases, including those transitioning from student (F-1) to H-1B status a development welcomed by both employers and immigrants.
According to USCIS, the proclamation applies only to new H-1B petitions filed on or after 12:01 a.m. EDT, September 21, 2025, for individuals who are outside the United States and do not hold a valid H-1B visa. This clarification means that individuals already within the US such as international students moving to H-1B employment are exempt from the additional $100,000 fee.
The contentious proclamation, introduced on September 19, had triggered widespread confusion among US employers and Indian applicants, leaving many unsure whether reentries, extensions, or amendments would attract the new charge. With the latest clarification, the USCIS has confirmed that the fee will not apply to amendments, extensions, or reentries based on previously approved petitions. “The Proclamation does not apply to any previously issued and currently valid H-1B visas, or any petitions submitted prior to September 21, 2025,” the agency stated. It further added that existing visa holders can travel freely in and out of the United States without restrictions, provided their status remains valid.
This announcement comes as a significant relief for Indian nationals, who form the largest group of H-1B visa recipients. In 2024, 70% of all H-1B visas were awarded to Indian professionals, while Indian students made up 27% of all international students in the US, an 11.8% rise from the previous year, according to the US Immigration and Customs Enforcement (ICE) Student and Exchange Visitor Program (SEVP). For many graduating students seeking a seamless transition from academia to the US workforce, the exemption from the new fee removes what could have been a massive financial hurdle nearly ₹89 lakh per visa petition.
While the exemption list is broad, employers must still pay the $100,000 fee in cases involving new petitions from outside the US or if USCIS denies a status-change request, deeming the applicant ineligible. Additionally, Secretary of Homeland Security Kristi Noem will retain the authority to grant rare case-by-case fee waivers in “extraordinarily rare circumstances,” particularly when the position is deemed to serve national interest or when no qualified American worker can fill the role.
USCIS has also laid out the payment mechanism for the new H-1B fee. All payments must be made through pay.gov, and proof of payment or exemption must accompany every petition. Any filing missing this verification will be automatically rejected. The clarification follows a lawsuit filed by the US Chamber of Commerce against the Trump administration, calling the fee “unlawful and harmful to small and medium-sized businesses.”
With this clarification, US employers can now proceed with pending change-of-status filings without fear of incurring the new fee. The move brings stability to thousands of Indian professionals already in the United States and ensures continued opportunities for Indian students transitioning into the American workforce. As the 2026 H-1B season approaches, immigration experts believe this clarification may help restore employer confidence while easing anxiety among visa holders and applicants alike.
