In a huge relief for thousands of Indian professionals and students in the United States, the US Citizenship and Immigration Services (USCIS) has announced that many people will be exempt from the new $100,000 H-1B visa fee announced by President Donald Trump last month.
This is the first official clarification from the Trump administration after weeks of confusion about who would need to pay the new fee.
💼 Who is Exempt from Paying the $100,000 Fee
The USCIS clarified that the new fee will not apply to:
People who are already living in the US on valid visas, such as H-1B, F-1 (student visa), or L-1 (intra-company transfer visa).
International students (F-1 visa holders) who are changing their status to H-1B jobs after graduation.
Existing H-1B visa holders who are applying for renewal or extension of their visas.
The USCIS said that the new rule only applies to new petitions submitted after 12:01 a.m. ET on September 21, 2025.
It also confirmed that H-1B visa holders can continue to travel in and out of the US without restrictions, clearing one of the biggest concerns among workers and employers.
💸 What the New Fee Was About
Last month, President Donald Trump announced a $100,000 annual fee (around ₹90 lakh) for US companies that sponsor highly skilled foreign workers through the H-1B visa program.
The move caused panic among tech workers, employers, and immigration lawyers — especially because Indians form the majority of H-1B visa holders.
Until now, visa fees ranged between $215 and $5,000, depending on the company’s size. The sudden jump to $100,000 — about 20 to 100 times higher — was seen as unaffordable for many companies, especially startups.
🇮🇳 Why This Matters Most to Indians
Indians are the largest group of H-1B visa holders, making up about 70% of all new H-1B approvals, followed by Chinese nationals (about 12%).
Currently, around 300,000 Indian workers live in the United States on H-1B visas, mostly working in the technology and services sectors.
Each year, the US issues 85,000 new H-1B visas through a lottery system — 65,000 for regular applicants and 20,000 for those with advanced US degrees.
The H-1B visa allows skilled workers to stay in the US for three years, with the option to extend for another three.
Experts had warned that such a high fee could have “killed the H-1B program”, making it impossible for smaller companies to hire skilled foreign talent.
👩💻 Impact on Indian-Americans and Tech Industry
The H-1B visa has long been a gateway for Indian professionals to build successful careers and lives in the United States.
Many Indian families in the US began their journey through the H-1B visa route.
The book The Other One Percent found that the H-1B program played a major role in making Indian-Americans one of the most educated and well-paid communities in the US.
Including family members, H-1B visa holders and dependents make up about one-fourth of the 3 million Indian-Americans living in the US.
Both Indian IT giants like Infosys, TCS, and Wipro, and American tech firms like Amazon, Microsoft, and Google, rely heavily on H-1B workers — many of whom are Indian graduates from US universities.
🏛 Political Reactions
Trump’s new visa fee triggered strong political reactions both in the US and India.
US Commerce Secretary Howard Lutnick defended the fee, saying it would help bring in “high earners” and discourage the hiring of “low earners who take American jobs.”
In India, Opposition leader Rahul Gandhi criticized Prime Minister Narendra Modi, accusing him of failing to protect Indian workers abroad.
Congress chief Mallikarjun Kharge even called the $100,000 fee a “birthday gift” from Trump to Modi, referring to a recent call between the two leaders.
The Indian government said it was studying the policy’s impact, while PM Modi reiterated his focus on self-reliance (“Atmanirbhar Bharat”), saying India must reduce dependence on other nations.
