Major relief for Indian students! Trump admin clears confusion on H-1B visa fee, USCIS explains who pays $100000 and who’s doesn’t

In a big relief for many US visa holders, especially Indians, the US Citizenship and Immigration Services (USCIS) has clarified that recent international college graduates already living in the United States will not have to pay the new USD 100,000 H-1B visa fee announced by the Donald Trump administration last month. The fee, introduced under a presidential order on September 19, 2025, had caused a lot of confusion among visa holders and employers because it wasn’t clear who exactly had to pay it.

What the new H-1B visa clarification says

According to new guidance released on October 20, USCIS explained that the USD 100,000 fee will not apply in cases where a person is already in the US and is simply changing visa status for example, when a student on an F-1 visa moves to an H-1B work visa, or when someone is extending their stay in the country.

However, the fee will apply to visa petitions for workers outside the United States or for those who must leave the country before their petition is approved.

USCIS also confirmed that people who already hold valid H-1B visas can continue traveling in and out of the country without being affected by the new rule. “The Proclamation applies only to new H-1B petitions filed on or after September 21, 2025, for people who are outside the US and do not have a valid visa,” the agency clarified.

The agency has also set up an online payment portal for employers who need to pay the new fee for eligible cases.

The Trump administration has not provided any automatic exemptions but said that employers can request an exception if hiring a foreign worker is in the national interest and there are no qualified American workers available for that position.

Relief for Indian Students and Professionals in the US

The new guideline issued has brought major relief to Indian students and professionals living in the United States. It is the first official clarification from the Trump administration since the confusion began over the USD 100,000 H-1B visa fee announced in September.

According to the new update, the rule will not apply to people who are already in the US. This includes international college graduates on F-1 student visas and employees working on L-1 visas.

For context, an L-1 visa allows international companies to transfer employees from their overseas offices to their US branches. An F-1 visa is given to foreign students who study full-time at accredited colleges or universities in the US.

The Trump administration said that anyone who is changing visa status within the country such as moving from F-1 to H-1B will not have to pay the new USD 100,000 charge.

The original September 19 proclamation by President Donald Trump was one of the most debated immigration decisions so far. It aimed to discourage overuse of the H-1B work visa program, which is heavily relied on by the US technology sector to hire skilled workers from abroad.

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