US Clarifies $100,000 H-1B Visa Fee Rule, Exempts Current Holders and Status Changes

Washington, Oct 2025 : In a major relief for thousands of foreign workers, the US Department of Homeland Security (DHS) has clarified that the recently announced $100,000 H-1B visa application fee will not apply to existing visa holders or those already living in the United States.

The updated guidance outlines a series of exemptions and carveouts, easing concerns among skilled professionals and employers alike. According to the DHS notification, workers who transition to H-1B status from other visa categories—such as the F-1 student visa—will not be required to pay the hefty new fee.

Similarly, H-1B holders seeking amendments, extensions, or changes of status within the US will be exempt. The new rule applies only to fresh visa petitions filed by individuals outside the United States who do not already hold a valid H-1B visa.

In addition, the DHS confirmed that current H-1B holders will not face any restrictions on travel or reentry to the country. To streamline the process, an online payment portal has been created for new applications falling under the revised policy.

The clarification follows widespread confusion and backlash after the initial announcement of the fee, which many believed would apply universally. The US Chamber of Commerce, the country’s largest business organization, filed a lawsuit against the Trump administration last week, calling the policy “unlawful” and economically damaging.

In its filing before the District Court in Washington, the Chamber argued that the fee would “inflict significant harm on American businesses” by forcing them to either raise labor costs or reduce hiring of highly skilled workers, particularly in technology and research sectors. The suit described the September 19 presidential proclamation introducing the fee as “plainly unlawful” and “a boon to America’s economic rivals.”

This marks the second major legal challenge to the new H-1B regulations. Earlier this month, a coalition of unions, education groups, and religious organizations also sued the administration, claiming the rules unfairly target skilled immigrants.

When signing the original proclamation, President Donald Trump defended the measure as a way to “incentivize hiring American workers.” However, the policy quickly sparked concern among employers and foreign professionals over possible barriers to reentry and renewal.

The White House clarified soon after, saying the $100,000 charge was a “one-time fee” applicable only to new applicants, not to renewals or existing visa holders.

H-1B visas remain a cornerstone of the US high-skilled labor market, particularly in technology and engineering fields. India-born professionals accounted for more than 70 per cent of approved H-1B visas in 2024, reflecting both the global demand for Indian talent and the backlog in processing new applications.

The DHS clarification is expected to restore confidence among employers and visa holders, easing immediate uncertainty in the tech and innovation sectors that heavily rely on skilled international workers.