Major Relief for Indians in US as Trump Administration Exempts H-1B Students and Workers from $100,000 Visa Fee

In a significant relief for thousands of Indian professionals and students in the United States, the Trump administration has clarified that recent international graduates already in the country and sponsored for H-1B visas will not be required to pay the newly introduced $100,000 fee. The exemption also applies to existing H-1B visa holders seeking renewals or extensions, according to the latest guidance from the US Citizenship and Immigration Services (USCIS).

The clarification comes after weeks of confusion and anxiety triggered by a presidential proclamation mandating a steep annual fee—equivalent to around ₹90 lakh—for employers sponsoring skilled foreign workers. The rule, which was to take effect from September 21, 2025, sparked widespread concern among Indian tech workers, US employers, and immigration attorneys.

USCIS has now confirmed that the fee does not apply to anyone already in the US on valid visas, including F-1 students, L-1 transferees, and current H-1B holders. The agency added that valid H-1B visa holders can continue traveling freely without new restrictions. Importantly, international students transitioning from F-1 to H-1B status are also exempt from the new fee.

The clarification is a huge relief for the Indian diaspora, who make up nearly 70% of new H-1B allocations each year. Over 300,000 Indian nationals currently work in the US under the program, primarily in technology and services. Experts had earlier warned that the proposed $100,000 fee—20 to 100 times higher than current costs—could devastate the H-1B system and hurt both Indian and American firms.

The political fallout of the announcement was swift. In India, opposition leaders accused Prime Minister Narendra Modi of failing to safeguard Indian professionals’ interests, while the government maintained that it was closely monitoring the situation.

For now, the clarification provides much-needed stability for thousands of skilled Indian workers and students—ensuring that America’s tech talent pipeline remains intact.