Washington D.C. – In a major relief for thousands of Indian professionals and students in the United States, the US Citizenship and Immigration Services has clarified that recent international graduates sponsored for H-1B status while already in the country will not be required to pay the steep $100,000 fee introduced by the Donald Trump administration last month. This marks the first time the Trump administration has actively clarified questions about the controversial H-1B visa fees that created widespread panic among the Indian diaspora.
Officials had earlier stated that existing H-1B visa holders would not be required to pay the H-1B visa fees announced last month. However, the latest guidance provides comprehensive clarification on various categories of visa holders and their exemption status, addressing weeks of confusion and anxiety within the Indian-American community.
Understanding the Original H-1B Visa Fees Announcement
The clarification comes after weeks of confusion following Trump’s proclamation, which mandated steep annual H-1B visa fees equivalent to around ₹90 lakh for employers sponsoring technically skilled foreign workers. The fee was scheduled to take effect from 12:01 am ET on September 21, triggering immediate panic among Indian workers, US employers, and immigration attorneys across the country.
Previously, visa application costs ranged between $215 and $5,000, depending on company size and category. The new H-1B visa fees of $100,000 would have been 20 to 100 times higher, exceeding the median annual salary of many new H-1B workers. Experts warned that these H-1B visa fees could “effectively kill the H-1B programme” by making it unaffordable for many employers and startups.
Comprehensive Relief for Existing Visa Holders
In its latest guidance addressing the H-1B visa fees controversy, USCIS stated that the $100,000 fee will not apply to anyone already in the United States on a valid visa. This includes F-1 student visa holders, L-1 intra-company transferees, and current H-1B visa holders seeking renewals or extensions.
The proclamation regarding H-1B visa fees “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,” the agency clarified. It also stated that H-1B holders can continue traveling in and out of the United States without restriction, addressing one of the biggest concerns raised after the H-1B visa fees announcement.
Students Transitioning to Work Visas Exempt
The USCIS further confirmed that existing foreign nationals applying for a change of status will not face the new H-1B visa fees. This particularly benefits international students on F-1 visas transitioning to H-1B jobs after graduation, a common pathway for Indian students who complete their education in the United States.
This exemption from H-1B visa fees represents crucial relief for the thousands of Indian students who graduate annually from American universities and seek employment opportunities in the US technology and services sectors.
Why Indians Were Most Affected by H-1B Visa Fees
The announcement about H-1B visa fees exemptions comes as a major reprieve for Indian tech professionals, who form the backbone of the H-1B visa program. There are approximately 300,000 Indian workers currently in the US on H-1B visas, mostly employed in the technology and services industries.
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Indians account for about 70% of all new H-1B visa allocations, followed by Chinese nationals at 11-12%, according to US administration data. This overwhelming representation meant that the H-1B visa fees would have disproportionately impacted the Indian community compared to any other nationality.
The H-1B visa allows highly skilled workers to live and work in the United States for up to three years at a time, with a possible extension of another three years. Each year, 85,000 new visas are awarded through a lottery system, with Indians dominating the allocation numbers.
Impact on Indian-American Community and Economy
For India, the stakes surrounding H-1B visa fees are exceptionally high. The H-1B visa has long been a gateway for middle-class upward mobility, with many Indian families building lives in the US through this route. Researchers behind The Other One Percent, a seminal study on Indian-Americans, have noted that the H-1B visa has been instrumental in making Indian-Americans one of the most educated and highest-earning communities in the US.
When counted with dependents, H-1B visa holders make up roughly one-fourth of the 3 million-strong Indian-American population, highlighting the community’s deep reliance on the programme and vulnerability to changes in H-1B visa fees policy.
Indian IT companies such as Infosys, Tata Consultancy Services, and Wipro have historically used the H-1B visa to deploy engineers to US client sites. American firms like Amazon, Microsoft, and Google also depend heavily on H-1B workers, many of whom are Indian graduates from US universities.
Political Reactions to H-1B Visa Fees Controversy
Trump’s original announcement of the $100,000 H-1B visa fees drew swift reactions both in the US and India. US Commerce Secretary Howard Lutnick defended the move, saying it was designed to attract “high earners” and discourage companies from bringing in “low earners who take jobs from Americans.”
He added that while H-1B quotas remain at 65,000 regular and 20,000 advanced degree slots, “there’ll just be less of them issued” under the new H-1B visa fees structure.
There was also a political row in India after Trump announced the H-1B visa fees. Leader of Opposition Rahul Gandhi accused Prime Minister Narendra Modi of failing to protect Indian workers’ interests, while Congress chief Mallikarjun Kharge called the fee a “birthday gift” from Trump to Modi, referring to the US President’s recent call to the Prime Minister.
The Centre said it was studying the implications of the new H-1B visa fees policy. Meanwhile, Prime Minister Modi, speaking in Gujarat, reiterated his call for “self-reliance,” saying India’s “only real enemy is dependence on other countries,” suggesting a strategic pivot away from reliance on foreign employment opportunities affected by H-1B visa fees.
