H-1B Visa Relief: USCIS Clarifies $100,000 Fee Rules, Major Exemptions for Indian Students and Techies

The United States Citizenship and Immigration Services (USCIS) has issued long-awaited clarifications on the newly introduced $100,000 H-1B visa fee, bringing major relief to Indian students and technology professionals. The move follows weeks of confusion after a September 19 presidential proclamation under the Trump administration that had triggered widespread concern among Indian companies and visa applicants.

What the USCIS Clarified

According to the new guidance, the $100,000 annual fee (around ₹90 lakh) will apply only to employers filing new H-1B petitions for beneficiaries outside the U.S. who do not already hold a valid H-1B visa.

The fee will not apply to:

• Change of status cases, such as international students (F-1 visa holders) moving to H-1B employment.
• Renewal or extension petitions for individuals already working in the U.S.
• Existing visa holders traveling in and out of the country.

The agency also confirmed that the rule does not affect petitions filed before 12:01 a.m. EDT on September 21, 2025, and that the fee cannot be transferred to employees, meaning employers must bear the cost.

USCIS has launched a dedicated online payment portal to process these new fees.

What the Rule Means for Indian Workers

The clarification is a huge relief for Indian professionals, who account for nearly 70% of all H-1B visa holders — about 300,000 workers in the U.S. tech and services sector.

Many feared that the $100,000 annual fee would make the visa financially unviable for employers, especially smaller firms and startups. Before the rule, H-1B processing costs ranged between $215 and $5,000, depending on company size and filing category.

“This clarification ensures that students and workers already in the U.S. are not penalized, which helps maintain the pipeline of skilled talent from India,” said an immigration consultant in New York.

Impact on Indian Tech Industry

Indian IT giants such as Infosys, Tata Consultancy Services (TCS), and Wipro, along with global companies like Amazon, Google, and Microsoft, are among the largest sponsors of H-1B visas.

Analysts warned that the initial confusion could have disrupted hiring and ongoing projects, particularly in software development, consulting, and AI research — areas where Indian professionals dominate.

The new USCIS clarification restores stability for thousands of STEM graduates and tech workers currently transitioning from student to work visas.

Political Context and Reactions

The Trump administration defended the $100,000 fee, saying it would “protect American jobs” by discouraging the import of lower-wage workers.

U.S. Commerce Secretary Howard Lutnick stated that the goal is to attract “high earners” while ensuring companies prioritize American hires.

“The quota remains unchanged, but fewer H-1Bs will be issued — focusing on the most skilled and highest-paid professionals,” he said.

Meanwhile, the Indian government has taken note of the policy. Prime Minister Narendra Modi, addressing a gathering in Gujarat, said the development underscores India’s push for self-reliance:

“India’s only real enemy is dependence on other countries,” he remarked.

Why It Matters

The H-1B program has long been a cornerstone of India–US tech relations, enabling skilled Indian professionals to work in America’s top companies. It has also been a critical pathway for Indian students to transition from U.S. universities to high-value employment.

Experts say the new USCIS clarification offers temporary relief but caution that the broader debate around U.S. immigration and employment policy could continue into the 2026 presidential election season.