US Clarifies H1-B Visa $100,000 Fee Exemption for Holders

The United States government has recently made clear some important rules regarding the new $100,000 fee introduced for H-1B visas. This announcement brings relief to many workers already in the country or those changing visa status inside the US, while setting new guidelines for others applying from outside the country.

The $100,000 fee rule was introduced in a presidential proclamation effective from September 21, 2025. It requires employers to pay a large fee for new H-1B visa petitions filed for workers who do not currently have a valid H-1B visa and are outside the United States. The purpose of this fee, according to officials, is to help prioritize highly skilled, high-paid individuals applying for work visas and to protect American workers by raising the cost for employers seeking foreign talent.

What makes the new guidance significant is its clarification on who must pay this fee and who doesn’t. The US Citizenship and Immigration Services (USCIS) has stated that this $100,000 charge does not apply to several important groups. First, it exempts all individuals who already hold a valid H-1B visa in the US. These visa holders can continue to travel, apply for renewals, or change their visa status inside the country without paying the new fee. Similarly, foreign students currently studying in the US on F-1 visas, as well as L-1 visa holders (workers transferred within a company), are also exempt when they apply to change their status to H-1B.

For example, many Indian students and IT professionals currently residing in the US who want to switch from student visas or intra-company transfers to H-1B status will not have to pay this fee. Petitions that involve amendments, extensions, or status changes within the US are also free from this charge.

However, new H-1B visa applicants who are outside the US and do not already hold a valid H-1B visa are required to pay the $100,000 fee when their employers file petitions on their behalf. This means fresh applicants looking to enter the US on H-1B visas from abroad will face this additional cost. The government has also established an online portal for paying the fee, and employers must show proof of payment when submitting petitions.

This clarification is important because it clears up confusion for employers and workers about the fee’s scope, especially addressing fears that workers traveling outside the US might trigger the fee unexpectedly when returning. Experts say the new rules provide some relief for ongoing visa holders and make it clear the fee mainly targets new outside applicants.

The introduction of this fee has sparked mixed reactions. Supporters argue that it will help prioritize highly skilled talent and reduce misuse of the visa program, while critics worry about the financial burden on new applicants and the potential impact on global talent inflow, particularly for technology companies heavily reliant on H-1B workers from countries like India.

Overall, the US government’s latest guidance attempts to strike a balance by enforcing new fees on fresh applications while protecting current visa holders and students from sudden changes. This measured approach helps reduce uncertainty and provides a clearer path forward for many foreign workers already contributing to the US economy.

In perspective, this policy change reflects ongoing efforts by the US administration to reform immigration rules with a focus on protecting local jobs, ensuring fair competition, and supporting advanced skills needed in a competitive global market. Time will tell how these changes affect businesses, workers, and the broader immigration system. Meanwhile, affected individuals and employers are advised to stay informed and plan accordingly to navigate these new regulations effectively.

With inputs from agencies

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