The BRICS TimesThe Trump administration has now clarified doubts about the new H-1B visa fee, a policy announced by the US President last month.
The Trump administration has given major relief to thousands of Indian professionals and students. It clarified that recent graduates sponsored for H-1B status will not pay the large $100,000 fee. This fee was introduced last month. Officials had also confirmed that existing H-1B visa holders would not need to pay the new charge.
This clarification follows weeks of great confusion. Trump’s proclamation mandated the steep annual fee. This fee is equal to around ₹90 lakh for employers. It applies when they sponsor technically skilled foreign workers. The rule was set to start on September 21, 12:01 am ET. This triggered widespread worry among Indian workers, US employers, and immigration lawyers.
Relief for Existing Visa Holders
The US Citizenship and Immigration Services (USCIS) gave its latest guidance. It stated that the $100,000 fee will not apply to anyone already in the US. This includes those on a valid visa. This covers F-1 student visa holders and L-1 transferees. Current H-1B visa holders seeking renewals or extensions are also exempt.
The agency confirmed 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. ET on September 21, 2025.” It also addressed major travel worries. H-1B holders can still travel freely into and out of the United States. Furthermore, USCIS confirmed that current foreign nationals applying for a change of status will not pay. This includes international students on F-1 visas moving to H-1B jobs.
Why Indians Were Most Affected
This announcement is a major reprieve for Indian tech professionals. They are the main group in the H-1B visa program. Roughly 300,000 Indian workers are in the US on H-1B visas now. Most work in the technology and services sectors. US data shows Indians get about 70% of all new H-1B visa allocations. Chinese nationals follow at 11–12%.
The H-1B visa lets highly skilled workers live and work in the US. They can stay for up to three years. They can also get an extension of another three years. Every year, 85,000 new visas are granted via a lottery. Previous visa application costs ranged from $215 to $5,000. Costs depended on company size and category. The new $100,000 fee would have been 20 to 100 times higher. An analysis by Hindustan Times showed this. The amount would exceed the median annual salary for many new H-1B workers.
Experts warned the fee could “effectively kill the H-1B programme.” It would make it too costly for many employers and startups.
Impact on the Indian-American Community
The stakes are high for India. The H-1B visa has long been a key route for middle-class progress. Many Indian families built lives in the US through this path. Researchers of The Other One Percent study noted the H-1B visa’s role. It helped make Indian-Americans one of the most educated and highest-earning US communities.
H-1B holders and their dependents make up about a quarter of the 3 million-strong Indian-American population. This shows the community’s strong reliance on the program. Indian IT companies like Infosys, TCS, and Wipro use the H-1B visa. They deploy engineers to US client sites. American firms like Amazon, Microsoft, and Google also rely heavily on H-1B workers. Many are Indian graduates from US universities.
Political Fallout of New H-1B Visa Fees
Trump’s $100,000 fee quickly drew strong reactions. These were seen in both the US and India. US Commerce Secretary Howard Lutnick defended the policy. He said it aimed to attract “high earners.” It would discourage companies from bringing in “low earners who take jobs from Americans.”
He added that H-1B quotas remain the same. This includes 65,000 regular slots and 20,000 advanced degree slots. However, he suggested, “there’ll just be less of them issued.” A political controversy also erupted in India after the fees were announced. Opposition Leader Rahul Gandhi accused Prime Minister Narendra Modi of failing to protect Indian workers. Congress chief Mallikarjun Kharge called the fee a “birthday gift” from Trump to Modi.
The Centre said it was studying the new policy’s impact. Meanwhile, PM Modi spoke in Gujarat. He repeated his call for “self-reliance.” He said India’s “only real enemy is dependence on other countries.”
Akshay Didwaniya
