Will the $100,000 H-1B fee affect you? Three key points from the US clarification

The US government has clarified how the new $100,000 fee on H-1B visas will apply, after President Trump issued a proclamation on September 19, 2025, restricting entry of certain nonimmigrant workers. The rule comes into effect from September 21, 2025, and aims to tighten the process for new H-1B filings.

Also Read| From shock to scramble: How a $100,000 H-1B fee rattled US big tech for 24 hours

Here are the three key points applicants and employers need to know:

1. Applies only to new petitions
The $100,000 payment is mandatory for any H-1B petition filed on or after 12:01 AM ET, September 21, 2025. Without this payment, petitions will not be processed.

2. Current visa holders unaffected
The proclamation does not affect petitions already filed, petitions already approved, or individuals who currently hold valid H-1B visas.

3. Travel remains unchanged
H-1B holders with valid visas can continue to travel to and from the US without disruption.

What really happened?
In just one day, the US immigration landscape was upended, sending shockwaves across the technology sector. On Friday night, President Donald Trump signed a proclamation imposing a $100,000 fee on H-1B visas, a program widely used by global and Indian IT companies. By Saturday night, the White House clarified the fee would only apply to new visas, not renewals or existing holders, offering partial relief but leaving businesses and workers unsettled.

The proclamation declared that companies hiring foreign professionals under the H-1B route would need to pay $100,000 per worker. The Trump administration argued the change would ensure only “extraordinarily skilled” individuals enter the country and reduce reliance on foreign talent to replace American workers.

Commerce Secretary Howard Lutnick said past visa policies admitted people earning below-average salaries and sometimes dependent on government support. He added that the new structure would filter out the “bottom quartile” while raising more than $100 billion for the US Treasury.

President Trump said the funds collected would help lower national debt and taxes. “Big tech loves the idea,” he added.

The announcement landed heavily in India, which accounts for about 71% of H-1B visa holders, most of them working in the US technology sector. Major Indian IT firms such as Infosys, Wipro, Tata Consultancy Services, and Cognizant have long depended on this pathway to staff projects for American clients.

With visas valid for three years and renewable up to six, the new fee created fears of prohibitive costs. The decades-long wait faced by many Indian professionals for permanent residency made the financial burden even heavier. The move threatened not only individual careers but also India’s $250-billion IT services industry, which relies on overseas deployment.

Market reaction was swift. Shares of IT services companies, including US-listed Indian firms, fell between 2% and 5% after the announcement. Critics said the measure would discourage talent mobility and harm innovation, while supporters argued it would prevent wage suppression and encourage American companies to train local graduates.

A White House memo said, “Information technology (IT) firms in particular have prominently manipulated the H-1B system, significantly harming American workers in computer-related fields.”

Twenty-four hours later, the White House used X to clarify the scope of the proclamation. The administration said the $100,000 fee would not apply to current H-1B visa holders or those renewing their visas. The exemption also covered people selected in the latest H-1B lottery, whose visas become effective on October 1.