H-1B visa fee explained: Who’s impacted, who’s not, and what it means for tech firms

The United States government on Monday issued a long-awaited clarification on the controversial $100,000 H-1B visa fee, introduced under a September 19, 2025, presidential proclamation by former President Donald Trump. The US Citizenship and Immigration Services (USCIS) has now outlined which applicants will be required to pay the hefty fee — and who will be exempt.

The move follows weeks of confusion among tech employers and skilled professionals after the September order imposed the new charge on certain nonimmigrant workers, particularly those applying under the H-1B visa category, which is the most common pathway for foreign technology and engineering professionals seeking to work in the United States.

USCIS clarification

According to the USCIS notice issued on October 20, the $100,000 fee applies only to new H-1B petitions filed on or after 12:01 a.m. EDT, September 21, 2025, for beneficiaries who are outside the United States and do not hold a valid H-1B visa.

In other words, the fee targets first-time H-1B applicants applying from abroad. The proclamation also extends to petitions requesting consular notification, port of entry notification, or pre-flight inspection for applicants currently in the US.

Who is exempt from paying the $100,000 fee?

The USCIS emphasized that the fee does not apply to everyone seeking to work in the US under an H-1B visa.
Here’s who is exempt:

Current H-1B visa holders: Individuals who already possess a valid H-1B visa are not affected by the new rule.

Petitions filed before September 21, 2025: Any H-1B petition submitted prior to this date remains under the previous fee structure.

Status changes within the US: International students on F-1 visas or professionals on L-1 visas who are changing their status to H-1B from within the country will not have to pay the $100,000 fee.

Extensions and amendments: The fee does not apply to petitions requesting an amendment, change of status, or extension of stay for individuals already residing lawfully in the US.

Reentry under valid visa: If a beneficiary with an approved H-1B petition travels abroad and returns with a valid H-1B visa, they are not subject to the new charge.

Who will have to pay the $100,000 fee?

The rule clearly stipulates that employers — not individual applicants — must bear the cost of the $100,000 H-1B visa fee when sponsoring first-time applicants from outside the United States.

This applies if:

The individual is not currently in a valid nonimmigrant status, or

The person leaves the US before their change-of-status petition is adjudicated.

If USCIS denies a petition for change of status or extension — for instance, if the applicant’s visa status is found invalid — the employer will then be required to pay the $100,000 fee as per USCIS instructions.

When and how to pay

Employers required to pay the charge must submit the amount electronically through the US federal payment portal, pay.gov. The USCIS has launched a dedicated page for this purpose: https://www.pay.gov/public/form/start/1772005176

Why was the fee introduced

The Trump administration justified the $100,000 levy as a measure to “prioritise American workers” and discourage overreliance on foreign labor. However, the steep fee — equivalent to about Rs 88 lakh — sparked widespread backlash from the global tech industry, which relies heavily on H-1B visas to fill skilled positions.

Industry experts warn the new cost could significantly raise hiring expenses for US employers and deter startups and mid-sized firms from sponsoring foreign professionals.

While the clarification ends weeks of confusion, the high visa fee marks one of the most restrictive policy shifts in recent years for high-skilled immigration. For now, existing H-1B holders and status changers within the US remain unaffected, but first-time applicants abroad face steep new costs that could reshape global talent mobility and hiring patterns in the tech sector.