Big Relief for Indian Techies & Students: US Eases $100,000 H-1B Visa Fee Rule
In a significant relief for thousands of Indian professionals and students in the United States, the Trump administration has announced that recent international graduates sponsored for H-1B visa status while already in the country will not be required to pay the steep $100,000 annual fee introduced last month.
Officials also confirmed that existing H-1B visa holders are exempt from the new fee structure.
The clarification follows weeks of uncertainty triggered by President Trump’s proclamation, which had imposed the hefty fee—equivalent to nearly ₹90 lakh—for employers sponsoring highly skilled foreign workers. The fee, set to take effect on September 21, had caused widespread concern among Indian workers, U.S. employers, and immigration attorneys.
Relief for Existing Visa Holders
The U.S. Citizenship and Immigration Services (USCIS) issued updated guidance stating that the $100,000 fee will not apply to individuals already in the United States on valid visas. This includes F-1 student visa holders, L-1 intra-company transferees, and current H-1B holders seeking renewals or extensions.
The agency clarified that 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.”
In addition, the USCIS addressed travel-related concerns, confirming that H-1B holders can continue to travel freely in and out of the United States. It also specified that foreign nationals applying for a change of status, such as international students moving from F-1 to H-1B jobs, will not be charged the new fee.
Why Indian Workers Were Hit Hardest
The H-1B visa program is crucial for Indian tech professionals, who make up the majority of its recipients. Around 300,000 Indians currently work in the U.S. on H-1B visas, primarily in the technology and services sectors.
According to U.S. data, Indians account for nearly 70% of all new H-1B allocations each year, followed by Chinese nationals at around 12%.
The H-1B visa allows skilled workers to live and work in the U.S. for up to three years, with a possible three-year extension. Each year, 85,000 new visas are awarded through a lottery—65,000 for regular applicants and 20,000 for advanced degree holders.
Prior to the new rule, visa application fees ranged between $215 and $5,000, depending on employer size and category. The proposed $100,000 fee, up to 100 times higher, would have exceeded the median annual salary of many new H-1B professionals. Immigration experts warned the move could have “effectively killed the H-1B program” by making it unaffordable, especially for startups.
A Vital Lifeline for Indian-Americans
The H-1B visa has long been a springboard for Indian immigrants, helping many middle-class families achieve upward mobility.
Researchers behind The Other One Percent, a major study on Indian-Americans, note that the visa played a central role in establishing them as one of the most educated and highest-earning communities in the U.S.
Including dependents, H-1B holders make up roughly one-fourth of the 3 million-strong Indian-American population, underscoring the community’s reliance on the program.
Major Indian IT firms such as Infosys, TCS, and Wipro have used H-1B visas to send engineers to U.S. client sites, while Amazon, Microsoft, and Google employ thousands of Indian graduates under the same program.
Global Reaction and Policy Pushback
The introduction of the $100,000 fee sparked strong reactions in both India and the United States.
U.S. Commerce Secretary Howard Lutnick defended the policy, claiming it aimed to attract “high earners” and discourage companies from hiring “low earners who take jobs from Americans.”
However, critics argued the policy would hurt innovation, limit diversity, and discourage global talent from working in the U.S.
Lutnick added that while H-1B quotas remain unchanged—65,000 regular slots and 20,000 for advanced degree holders—“there’ll just be fewer issued” because of the new fee structure.
The Bottom Line
The exemption marks a major relief for Indian professionals, students, and tech firms alike. For now, the decision helps preserve a vital visa program that fuels both the U.S. technology industry and the Indian-American dream.
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