The controversial fee applies only to new H-1B petitions filed after September 21, 2025, for applicants outside the US without valid visas.
BY PC Bureau
October 21, 2025: In a major update for Indian professionals and students in the United States, the Donald Trump administration has clarified exemptions to the controversial $100,000 H-1B visa fee introduced through a presidential proclamation in September 2025.
The United States Citizenship and Immigration Services (USCIS) issued guidance specifying who must pay the fee, how to make payments, and how to apply for exemptions — bringing significant relief for international students.
“The Proclamation applies to new H-1B petitions filed at or after 12:01 a.m. Eastern Daylight Time on September 21, 2025, for beneficiaries outside the United States who do not hold a valid H-1B visa,” the USCIS statement said.
The proclamation also covers petitions requesting consular notification, port of entry notification, or pre-flight inspection for aliens already in the US.
Details on the H1-B $100k fee are now out. And as we feared, it’ll barely make a dent in the mass influx of workers from nations with populations 3x the size of the US.
American colleges will continue their pay to stay scheme and Silicon Valley leader will rejoice at the… pic.twitter.com/iGV4MgmdnB
— Mambo Murray (@highdefbrah) October 21, 2025
Major Relief for Change of Status Cases
A key clarification for employers and applicants is that the fee does not apply to “change of status” petitions — cases where individuals move from one visa category to another without leaving the country, such as switching from F-1 student status to H-1B status.
Introduced on September 19, 2025, the nearly Rs 89 lakh fee sparked confusion among employers and applicants, with earlier directives leaving critical questions unanswered. The USCIS guidance has now eased uncertainty, particularly for Indian students, who form the largest group of international students in the US.
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According to the US Immigration and Customs Enforcement (ICE) Student and Exchange Visitor Program (SEVP), Indian students accounted for 27% of all foreign students in the US in 2024, marking an 11.8% increase from the previous year.
Exemptions for Reentries, Amendments, and Extensions
The USCIS clarified that the proclamation does not apply to:
Previously issued and currently valid H-1B visas
Petitions submitted before 12:01 a.m. EDT on September 21, 2025
Petitions requesting an amendment, change of status, or extension of stay for aliens already in the US
Additionally, beneficiaries of such petitions who later travel outside the US and apply for a visa or reenter on a valid H-1B visa will not be required to pay the new fee.
Employers, however, must pay the fee if USCIS denies the application due to ineligibility for status change or extension.
Rare Waivers by Secretary of Homeland Security
USCIS also noted that Secretary of Homeland Security Kristi Noem may grant exemptions in extraordinarily rare circumstances, including if no American worker can fill the role or if the employment is deemed in the national interest.
The $100,000 fee must be paid through pay.gov before submitting an H-1B petition. Any filing without proof of exemption will be rejected, according to the guidance.
The clarification follows a lawsuit by the US Chamber of Commerce, which challenged the fee as “unlawful and harmful to small and medium-sized businesses.”
With these updates, Indian students and professionals now have a clearer path to navigate the H-1B process amid the new presidential proclamation.
