Highlights:
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USCIS confirms H-1B Fee won’t apply to current visa holders.
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Exemption includes H-1B, F-1 students, and L-1 visa holders in the US.
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Applies to visas issued/petitions submitted before Sept 21, 2025.
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Nearly 300,000 Indian professionals benefit from the ruling.
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Current H-1B holders can renew visas and travel freely.
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Experts warned the fee could have disrupted US and Indian tech industries.
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Announcement sparked political debate in both the US and India.
The US Citizenship and Immigration Services (USCIS) has confirmed that the newly announced H-1B Fee of $100,000 will not apply to current visa holders or international graduates already residing in the United States. The clarification, issued by the Trump administration, brings an end to weeks of uncertainty among Indian tech professionals, who form the largest segment of the H-1B workforce.
Officials stated that the rule “does not apply to any previously issued and currently valid H-1B visas, or any petitions submitted prior to 12:01 am ET on September 21, 2025.” This means individuals already on valid visas—such as H-1B, F-1 student, or L-1 intra-company transfer categories—are exempt from the H-1B Fee.
The USCIS announcement follows widespread concern after President Trump’s initial proclamation, which many feared would impose the steep H-1B Fee on all applicants, including those already working or studying in the US.
Clarification Ends Confusion Over the H-1B Fee Policy
The official clarification ensures that foreign nationals already in the US, including international students transitioning from F-1 to H-1B status, will not be required to pay the new H-1B Fee. Furthermore, current H-1B holders can continue to renew their visas and travel freely without additional costs or restrictions.
This decision has been particularly significant for Indian nationals, who account for nearly 70 percent of all new H-1B visas. As of 2025, about 300,000 Indian professionals are employed in the US under the H-1B visa program, mostly in the technology and professional services sectors.
The H-1B Fee proposal initially caused concern across industries that rely on skilled foreign talent. Until now, visa costs ranged between $215 and $5,000 depending on the employer’s size and business type. The new H-1B Fee would have been nearly 100 times higher, potentially pricing out smaller companies and startups that depend on global talent to fill specialized roles.
Experts Warned the H-1B Fee Could Harm Innovation
Industry analysts and policy experts had previously warned that applying the H-1B Fee across the board could “effectively kill the H-1B programme” by discouraging employers from sponsoring skilled foreign workers. Many argued that the increase would damage not only the Indian IT industry but also the US technology sector, which has long benefited from the contributions of international professionals.
For Indian workers, the H-1B route has been a vital channel for professional advancement and migration. The program allows skilled workers to live and work in the US for three years, with a possible three-year extension. Many Indian families have built long-term lives in the US through this pathway.
According to studies such as The Other One Percent, the H-1B visa has played a central role in making Indian-Americans one of the most successful immigrant communities in the country.
H-1B Fee Policy Sparks Political Debate in the US and India
The announcement of the H-1B Fee by the Trump administration also triggered political debate. US Commerce Secretary Howard Lutnick defended the policy, claiming it was designed to attract “high earners” while discouraging companies from hiring “low earners who take jobs from Americans.”
However, Indian political leaders criticized the decision. Rahul Gandhi accused Prime Minister Narendra Modi of failing to protect Indian workers’ interests, while Congress President Mallikarjun Kharge described the proposed fee as a “birthday gift” from Trump to Modi.
The Indian government said it continues to study the policy’s broader implications. Prime Minister Modi, addressing a gathering in Gujarat, reaffirmed his focus on self-reliance, saying, “India’s only real enemy is dependence on other countries.”
Broader Impact of the H-1B Fee on the Global Workforce
The H-1B Fee issue highlights the growing tension between national immigration policy and global labor mobility. Many multinational corporations, including Infosys, TCS, and Wipro, depend heavily on H-1B workers to serve clients in the US. Major American firms such as Google, Amazon, and Microsoft also employ a significant number of Indian professionals through the same program.
Had the H-1B Fee been applied universally, it could have restricted access to global talent, disrupted ongoing projects, and reduced innovation in key technology sectors. The exemption for existing visa holders therefore ensures continuity for both employers and employees, stabilizing a system already facing increased scrutiny.
Clarity Restores Confidence in the H-1B Program
With the USCIS clarification, the immediate panic surrounding the H-1B Fee has subsided. The exemption for current visa holders and international graduates confirms that the US remains open to skilled professionals who contribute significantly to its economy.
For Indian tech workers, who make up the majority of H-1B participants, this clarification restores a measure of stability and assurance in an uncertain immigration climate. The Trump administration’s decision not to impose the H-1B Fee on existing holders marks a key development in preserving the integrity of the program and maintaining the US’s position as a destination for global talent.
