The Trump administration has confirmed that the recently announced $100,000 fee for H-1B visa sponsorship will not apply to international graduates or current visa holders already in the United States. This decision comes after weeks of uncertainty following the original proclamation, which had raised alarm among Indian professionals, U.S. employers, and immigration attorneys.
Existing Visa Holders Exempted
According to the U.S. Citizenship and Immigration Services (USCIS), the fee does not apply to anyone with a valid visa, including:
- Current H-1B visa holders
- F-1 student visa holders
- L-1 intra-company transferees
The USCIS clarified that 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.” H-1B holders can continue traveling in and out of the U.S. without restriction, and students transitioning from F-1 to H-1B status will not have to pay the new fee.
Why Indians Were Most Affected
Indian professionals form the backbone of the H-1B program. Around 300,000 Indians currently hold H-1B visas, mostly in the technology sector. Indians receive roughly 70% of all new H-1B allocations, far outpacing other nationalities.
H-1B visas allow highly skilled workers to live and work in the U.S. for up to three years, extendable by another three, with 85,000 new visas awarded annually via lottery. Previously, fees ranged between $215 and $5,000, making the proposed $100,000 fee 20 to 100 times higher than normal costs, exceeding the median salary of many new H-1B workers.
Concerns Over the Fee
Experts warned that such a steep fee could effectively cripple the H-1B program, making it unaffordable for startups and many U.S. employers. Indian IT companies like Infosys, TCS, and Wipro, along with U.S. tech giants like Amazon, Microsoft, and Google, rely heavily on H-1B workers, many of whom are Indian graduates.
Impact on Indian-American Community
The H-1B visa has historically been a gateway to upward mobility for Indian families in the U.S., contributing to one of the most educated and high-earning immigrant communities. H-1B holders, including their dependents, make up roughly one-fourth of the 3 million-strong Indian-American population, highlighting their deep reliance on the program.
Political Reactions
Trump’s fee announcement sparked debate in both countries. U.S. Commerce Secretary Howard Lutnick defended the fee as a way to attract “high earners” and limit jobs for lower-paid foreign workers. In India, opposition leaders criticized the government, with Rahul Gandhi accusing PM Modi of failing to protect Indian workers’ interests, and Mallikarjun Kharge calling it a “birthday gift” from Trump to Modi.
PM Modi responded by emphasizing self-reliance, stating that India’s “only real enemy is dependence on other countries,” while the Indian government reviewed the implications of the policy.
