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Relief to Indian Students? New USCIS Update Specifies H-1B Fee Exemptions

Relief to Indian Students? New USCIS Update Specifies H-1B Fee Exemptions

A most recent USCIS update has clarified what could be seen as one of the big reliefs yet for existing H-1 visa holders, including the Indians. USCIS has made it explicit that the recent international college graduates who are sponsored for H-1B status while already in the US won’t be subject to the hefty $100,000 fee imposed on the programme by the Donald Trump administration. Previously, this same controversial proclamation has left the employers and visa holders in a lurch, because there was little clarification about how this fee would be charged.

What USCIS has clarified

In a newsbite updated on October 20, the USCIS has made clear that the hefty fee will not apply to a ‘change of status’ case, i.e., where a person is changing from one category to another without leaving the country. It could be an F-1 student moving to an H-1B status. It could also be a visa holder seeking an extension of stay within America.

The newsroom update clearly states: ‘Under the Proclamation, new H-1B petitions filed at or after 12:01 a.m. eastern daylight time on September 21, 2025, must be accompanied by an additional $100,000 payment as a condition of eligibility.’

In other words, the fee will only apply to this category of fresh applicants. The newsroom update further clarifies how those who are exempted from the fee need to submit evidence of exception from the fee at the time of filing the H-1B petitions:

‘In accordance with section 1(c) of the Proclamation, for H-1B petitions subject to the Proclamation, petitioners must submit a copy of the proof of the payment from pay.gov or evidence of an exception from the fee from the Secretary of Homeland Security at the time of filing the H-1B petition. Petitions subject to the $100,000 payment that are filed without evidence of payment or the grant of an exception will be denied.’

The agency has also opened an online portal to pay the required fee seamlessly. Moreover, USCIS has announced that they have received enough petitions to reach the congressionally mandated 65,000 H-1B visa regular cap and the 20,000 H-1B visa U.S. advanced degree exemptions for the fiscal year 2026.

How the news brings relief to Indian students in the U.S.

The Print reported that the proclaimed fee “does not apply to a petition filed at or after 12.01 am Eastern Daylight Time on 21 September 2025, that is requesting an amendment, change of status, or extension of stay for an alien inside the United States, where the alien is granted such amendment, change, or extension.”

Furthermore, the updated guideline has added: “Further, an alien beneficiary of such petition will not be considered to be subject to the payment if he or she subsequently departs the United States and applies for a visa based on the approved petition, and/or seeks to reenter the United States on a current H-1B visa.”

Hence, not only will Indian students looking to change their status from F-1 to H-1B be exempt from the fee, but they will also be allowed to depart and re-enter the U.S. without restriction.

Interestingly, the USCIS has opened up yet another exemption under the section exemptions granted by the Secretary of Homeland Security: if the Secretary determines no American worker is available to fill a certain role, the eligible alien worker will be exempted from the fee:

‘Exceptions to the $100,000 payment are granted by the Secretary of Homeland Security in the extraordinarily rare circumstance where the Secretary has determined that a particular alien worker’s presence in the United States as an H-1B worker is in the national interest, that no American worker is available to fill the role, that the alien worker does not pose a threat to the security or welfare of the United States, and that requiring the petitioning employer to make the payment on the alien's behalf would significantly undermine the interests of the United States.’

As one of the leading EB-1A consultants, we are always staying updated on all the minute changes in the U.S. visa landscape. Stay tuned to our blog section for fresh insights, analytics, and authentic news.

Sources & further readings

  1. U.S. Citizenship and Immigration Services. “H-1B Specialty Occupations.” Accessed October 21, 2025.
  2. Padmanabhan, Keshav. “US Clarifies Who Is Exempt from $100,000 H1-B Visa Fee. There’s Good News for Indian Students & Techies.” ThePrint, October 21, 2025.
  3. Nath, Sanstuti. “H-1B Visa Row: Team Trump Specifies Who Will Be Exempted from $100,000 Fee.” NDTV, October 21, 2025.
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