The Donald Trump administration has clarified exemptions to the controversial $100,000 H-1B visa fee introduced via a presidential proclamation in September, allowing employers to proceed with change-of-status filings.
The proclamation applies only to new petitions for individuals outside the United States.
In a significant development for Indian professionals and students in the US, the administration issued guidance on who must pay the H-1B fee, the payment methods, and how to apply for exceptions, providing considerable relief for students.
“The Proclamation applies to new H-1B petitions filed at or after 12:01 a.m. Eastern Daylight Time on September 21, 2025, on behalf of beneficiaries who are outside the United States and do not have a valid H-1B visa,” said a statement from the US Citizenship and Immigration Services (USCIS).
“The Proclamation also applies if a petition filed at or after 12:01 a.m. Eastern Daylight Time on September 21, 2025 requests consular notification, port of entry notification, or pre-flight inspection for an alien in the United States,” it added.
The biggest relief for employers is that the USCIS clarified the fee does not apply to “change of status” cases, where individuals change from one visa category to another without leaving the country, such as moving from F-1 student status to H-1B status.
The contentious proclamation, introduced on 19 September, had imposed an H-1B visa fee of nearly Rs 89 lakh and caused confusion among employers and applicants due to unclear earlier directives.
The clarification is particularly welcome for Indian students, who remain the largest group of international students in the US. Indian students accounted for 27 per cent of all foreign students in 2024, marking an 11.8 per cent increase from the previous year, according to the annual report by the US Immigration and Customs Enforcement (ICE) Student and Exchange Visitor Program (SEVP).
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Fee waived for reentries and amendments after Sept 21
The USCIS assured that existing H-1B visa holders and approved beneficiaries can travel in and out of the US without restrictions.
“The Proclamation does not apply to any previously issued and currently valid H-1B visas, or any petitions submitted prior to 12:01 a.m. Eastern Daylight Time on September 21, 2025,” the agency said.
“The Proclamation also does not apply to a petition filed at or after 12:01 a.m. Eastern Daylight Time on September 21, 2025 requesting an amendment, change of status, or extension of stay for an alien inside the United States where the alien is granted such amendment, change, or extension,” it added.
“Further, an alien beneficiary of such a petition will not be considered subject to payment if he or she subsequently departs the United States and applies for a visa based on the approved petition and/or seeks to reenter the United States on a current H-1B visa,” the statement said.
The guidance notes that employers must pay the fee if USCIS denies an application, deeming the individual ineligible for status change or extension.
Kristi Noem to grant H-1B fee waiver in rare cases
Other exemptions will be granted by Secretary of Homeland Security Kristi Noem in “extraordinarily rare circumstances,” including if no American worker can fill the role or if the immigrant’s employment is in the national interest, USCIS said.
The agency also provided detailed guidance on payment, directing that the $100,000 fee be paid via pay.gov and submitted prior to filing an H-1B petition. Any filing lacking proof of exemption will be rejected.
The clarification follows a lawsuit filed by the US Chamber of Commerce against the Trump administration over the new H-1B visa application fee, calling it “unlawful and harmful to small and medium-sized businesses.”
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