H-1B $100,000 fee explained: Who pays, who doesn't, and what USCIS just clarified

The Trump administration clarified the $100,000 H-1B visa fee applies only to new petitions for foreign workers outside the US, exempting existing visa holders.

H-1B visa news: The United States Citizenship and Immigration Services (USCIS) has issued a long-awaited clarification on the controversial $100,000 H-1B visa fee announced last month by President Donald Trump, a move that had triggered confusion among employers, visa holders, and students.

US employers sponsoring new foreign workers from abroad under the H-1B programme must pay the $100,000 fee. (Representational image)

The clarification, released on Monday, confirms that existing visa holders inside the US, including students and professionals, will not be required to pay the new fee, which applies only to new H-1B petitions filed for workers outside the country.

Here’s a breakdown of what the new rule means, who must pay, and who’s exempt.

What is the $100,000 H-1B visa fee?

On September 20, 2025, President Donald Trump signed a proclamation introducing a $100,000 annual fee, equivalent to nearly ₹90 lakh, for employers sponsoring technically skilled foreign workers on H-1B visas.

The administration said the fee was designed to “protect American workers” and curb what it called “abuse” of the visa programme, widely used by the tech industry to hire foreign professionals.

Under the order, the fee was set to apply to any new H-1B petitions filed on or after 12:01 am ET, September 21, 2025.

What the USCIS clarified this week

In its October 20, 2025 guidance titled “Who Is Subject to the $100,000 Fee”, the USCIS detailed that the proclamation does not apply to any previously issued or currently valid H-1B visas, or to any petitions submitted before September 21.

The agency also confirmed that the fee:

• Will not apply to individuals already inside the US changing from another visa status - such as F-1 (student) or L-1 (intra-company transfer) - to H-1B.
• Will not apply to existing H-1B visa holders who are renewing, extending, or amending their stay in the US.
• Does not restrict travel for current H-1B visa holders, who can continue to enter and exit the country freely.

However, the USCIS said the fee does apply to:

• New petitions for workers outside the United States, or
• Cases where a petition requests “consular notification” or “pre-flight inspection” for an applicant abroad.

5 points about the new H-1B visa fees

Who pays the H-1B visa fee?

Employers sponsoring new foreign workers from abroad under the H-1B programme must pay the $100,000 fee at the time of petition submission.

A dedicated online portal for processing and paying the fee has also been launched by USCIS, as mandated by the Trump proclamation.

The cost is to be borne by employers, not visa holders, but industry bodies have warned that it could discourage US companies from hiring skilled international workers, especially those from India.

H-1B visa fee: Who is exempt?

The exemption list, clarified Monday, includes:

• Existing H-1B visa holders seeking renewal or extension.
• F-1 student visa holders applying for H-1B status while inside the US.
• L-1 visa holders applying for a change of status to H-1B from within the US.
• Foreign nationals with expired visas who reapply using an already-approved petition.

Why it matters for Indians

The H-1B programme is vital for India’s technology sector and skilled workforce. Around 300,000 Indian professionals currently hold H-1B visas in the US, and Indians account for roughly 70% of all new H-1B allocations each year.

Previously, H-1B visa fees ranged from $215 to $5,000, depending on company size and role type. The new $100,000 levy would have been 20 to 100 times higher, exceeding the median annual salary of many new visa holders, according to Hindustan Times analysis.

Experts had warned that such a steep charge could have “effectively killed” the H-1B programme and jeopardized thousands of Indian careers in the US tech industry.