H-1B, L-1 visa holders, students: Who pays $100,000 fee and who's exempt

Recent US guidance brings relief for Indian students and H-1B visa holders already in the country, confirming they won't be subject to the new $100,000 charge

In a major relief for H-1B visa holders and international students on F-1 visas, the United States Citizenship and Immigration Services (USCIS) has confirmed that recent graduates in America who are switching to H-1B status won’t be subject to the $100,000 fee announced by the Donald Trump administration last month.

 

The controversial presidential proclamation issued on September 19, 2025, sparked confusion among employers and visa holders as earlier guidance failed to spell out who exactly would pay the charge.

 

“MASSIVE loophole in Trump's $100,000 fee announcement. You come as a visitor/student/other nonimmigrant visa, you don't need to pay the fee, even if you travel afterward to obtain an H-1B visa,” said American immigration attorney Charles Kuck on X.

 

 

When does the H-1B Visa new fee apply?

 

According to the USCIS, the fee applies to petitions filed on or after 12:01 a.m. eastern daylight time on September 21, 2025, for beneficiaries outside the United States who do not have a valid H-1B visa.

 

It also applies to petitions that request consular notification, port of entry notification, or pre-flight inspection for someone inside the US.

 

However, those applying for a change of status, such as F-1 students moving to H-1B status, or for an extension of stay will not need to pay the fee. 

 

Who has to pay and who doesn’t H-1B Visa Fee?

 

Who must pay the $100,000 fee

• New H-1B petitions filed on or after September 21, 2025

• Workers outside the United States without a valid H-1B visa

• Petitions requesting consular or port of entry notification for workers in the US

• Petitions where a change of status or extension request is denied

 

Who is exempt from new H-1B Visa Fee

• Current H-1B holders with valid visas

• Petitions submitted before 12:01 a.m. EDT on September 21, 2025

• Petitions seeking amendment, change of status, or extension of stay inside the United States where approval is granted

 

What does this mean for Indian students and workers?

 

The guidance, released on October 20, 2025, directly benefits thousands of Indian students and professionals in the US who were worried about the hefty new charge.

 

It covers graduates on F-1 student visas and employees on L-1 visas, as both categories involve individuals already present in the US. These applicants can change their visa status without being hit by the $100,000 fee.

 

An L-1 visa allows multinational firms to transfer employees from overseas offices to American branches, while an F-1 visa is issued to foreign students enrolled in accredited institutions.

 

“The new $100,000 H-1B fee rule has a major grey zone: F-1 to H-1B change of status inside the US? Exempt. But if the same person travels abroad for visa stamping, will the fee apply? USCIS guidance is silent,” wrote legal advisor Harsha Bopuri on X.

 

Why did the Trump administration introduce the fee?

 

The Trump administration said the $100,000 H-1B visa fee was introduced to prevent abuse of the programme, heavily used by technology firms, and to protect American jobs. However, business groups and legal experts have warned that the measure could disrupt multiple industries that rely on skilled foreign labour.

 

The USCIS has also launched an online portal to collect the new petition fee and confirmed that employers may request exceptions in cases where a worker’s presence serves the national interest and no American is available for the role.