US Eases $100,000 H-1B Fee but Imposes Cap on Foreign Students, Sparking Concern in India

The Trump administration’s recent relaxation of the controversial $100,000 H-1B visa fee has brought significant relief to thousands of Indian professionals and students already residing in the United States. However, a new restriction on foreign student admissions has triggered fresh concerns over the long-term flow of talent from India, according to a report by the Global Trade Research Initiative (GTRI).

On October 21, 2025, the US Citizenship and Immigration Services (USCIS) clarified that the hefty H-1B fee would not apply to existing visa holders or students already in the country. The exemption covers those transitioning from F-1 student visas to H-1B work status and professionals shifting from L-1 intra-company transfers to H-1B, preventing major disruptions for Indian talent. Indians constitute nearly 70% of all H-1B holders and 27% of foreign students in the US, making the exemption a critical reprieve.

However, this relief coincides with a new cap limiting foreign students to just 15% of total university admissions, with no more than 5% allowed from any single country. The GTRI report warned that this policy could severely restrict new Indian students from entering US universities and eventually obtaining work visas.

“The two measures move in opposite directions — easing the burden on existing talent while tightening access for future students,” the think tank observed. It also highlighted that frequent policy reversals under the Trump administration have created instability for Indian IT firms and professionals.

While the latest clarification benefits around 300,000 Indian professionals in the US, experts caution that the new student cap and unpredictable immigration shifts could deter aspiring Indian talent from pursuing education and careers in America.