Relief for Indian students as Trump administration clarifies $100,000 H-1B fee rule

The clarification addresses weeks of confusion following Team Trump’s September 19 proclamation, which introduced the steep fee for employers filing new H-1B petitions.

What Team Trump said

In new guidance issued on October 20, the USCIS confirmed that the hefty fee would not apply to cases involving a change of status, such as F-1 international students transitioning to H-1B employment status, or to extensions of stay within the US.

However, the agency stated that the fee will apply to petitions filed on behalf of workers outside the United States or to those required to depart before adjudication is completed.

“The Proclamation applies to new H-1B petitions filed at or after 12:01 a.m. eastern daylight time on September 21, 2025, on behalf of beneficiaries who are outside the United States and do not have a valid H-1B visa,” the USCIS said.

The clarification also noted that current H-1B visa holders will not be restricted from traveling in and out of the US. An online portal has been set up for employers required to pay the new $100,000 petition fee.

While the Trump administration has not granted any blanket waivers, it said employers may request exceptions if a worker’s presence is in the national interest and no qualified American is available for the role.

Relief to Indian students in the US

The Monday guidelines are the administration’s first direct response to the confusion surrounding the proclamation. The move provides much-needed clarity for Indian graduates on F-1 visas and employees on L-1 visas, confirming they won’t be subject to the $100,000 fee when applying for a change of status.

The L-1 visa allows multinational firms to transfer staff from foreign offices to the US, while the F-1 visa covers full-time international students enrolled in accredited American institutions.

By excluding in-country status changes, the Trump administration has spared existing visa holders from one of its most disruptive immigration measures yet.

The September proclamation marked one of President Trump’s toughest measures on the employment of foreign workers. The administration said the new fee was intended to prevent abuse of the H-1B programme, which is heavily used by the tech industry.

However, legal experts and business groups warned that the policy could cripple critical sectors struggling with labour shortages.

While USCIS has now clarified that only new H-1B petitions for workers outside the US are affected, questions remain over whether specific industries or occupations could receive future exemptions.