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$100k H-1B fee not for stay extensions, status changes: US
Monday’s announcement from USCIS represents the latest in a series of clarifications aimed at resolving widespread confusion about the policy’s scope
The US government exempted foreign students from its controversial $100,000 H-1B visa fee on Monday, bringing relief to thousands of graduates — including from India who make up among the largest cohorts in American colleges -- who feared employers would abandon sponsorship plans due to the prohibitive cost.
US Citizenship and Immigration Services clarified on its website that the new fee applies only to H-1B petitions involving individuals outside the US, meaning foreign students already in America can transition from F-1 student visas to H-1B work visas without triggering the charge.
The clarification marks a significant policy reversal that preserves a crucial pathway for international graduates.
“F-1 students can finally breathe a sigh of relief. Because the Proclamation’s $100,000 payment requirement applies only to H-1B petitions involving individuals outside the US, international graduates who remain in valid F-1 status and transition to H-1B domestically are spared from this costly new condition. This distinction provides welcome clarity and stability for students who have invested in their U.S. education and plan to continue contributing to the workforce,” said Nicole Gurnara, principal immigration attorney at Manifest Law.
The exemption provides critical clarity for the 331,602 Indian students studying in America during 2023-24, according to the International Institute of Education. India surpassed China that year as the largest source of international students in the United States, with many banking on the F-1 to H-1B pathway as their route to American employment and eventual permanent residency.
President Donald Trump announced in September that H-1B visa application fees would rise from roughly $3,600 to $100,000 per application. After initial confusion that sparked weekend panic among visa holders, the administration clarified the rules applied only to fresh applications and constituted a one-time rather than annual charge.
Monday’s announcement from USCIS represents the latest in a series of clarifications aimed at resolving widespread confusion about the policy’s scope.
Commerce Secretary Howard Lutnick had explicitly stated the decision was intended to make hiring foreign workers economical only for the highest-paid positions, raising concerns among Indian students seeking entry-level jobs that employers would simply refuse sponsorship.
“While the update does offer more clarity to those already with an approved H-1B, we are still reviewing the effects on future H-1B petitions and counselling on alternative pathways like the O-1 and EB-1,” said Sophie Alcorn, a Silicon Valley immigration lawyer.
The student exemption comes as other visa restrictions continue to mount. Proposed changes to the H-1B lottery would prioritise higher-wage workers, disadvantaging younger and less highly paid Indian graduates. Additionally, legislation has been introduced in the US Senate that would further tighten visa norms and work requirements for foreign students.
The cumulative uncertainty may already be dampening interest in American higher education. According to the US government’s International Trade Administration, Indian student visa arrivals fell 44.5 per cent in August 2025 compared to the previous year. July saw a similar decline of roughly 46 per cent.
The sharp drops suggest that prospective students and their families are reconsidering American education amid concerns about post-graduation employment prospects and mounting visa restrictions.
For current students already in America, however, Monday’s clarification removes a major obstacle. The exemption means companies hiring recent graduates won’t face the $100,000 fee, maintaining the traditional pathway that has allowed generations of Indian students to build careers in Silicon Valley and across American technology sectors.
