Washington DC, 21 Oct

In what will bring some relief to those seeking to apply for H1B visas in the US, the US Citizenship and Immigration Services on Monday (local time) has clarified that the USD 1,00,000 H1B visa fee will not apply to applicants seeking a "change of status" or "extension of stay", according to fresh guidelines.

USCIS confirmed that the $1,00,000 H1B fee can be avoided if the applicant enters on a different visa (e.g. F-1 visa for international students, L-1 visa for international companies) and then switches to H1B inside the US. They can re-enter the US on their H1B and not be fined.

The Proclamation applies to new H1B petitions filed at or after 12.01 am eastern daylight time on 21 September, 2025, on behalf of beneficiaries who are outside the United States and do not have a valid H1B visa. The Proclamation also applies if a petition filed at or after 12:01 a.m. eastern daylight time on 21 September, 2025, requests consular notification, port of entry notification, or pre-flight inspection for an alien in the United States.

As per the official website of USCIS, the Proclamation does not apply to previously issued and currently valid H1B visas or petitions submitted prior to 12.01am. Eastern daylight time on 21 September 2025. It does not prevent any holder of a current H1B visa or any alien beneficiary following petition approval from travelling in and out of the United States.

It further noted, the H1B classification has an annual numerical cap of 65,000 new statuses/visas each fiscal year (with certain deductions and additions based on H-1B1 set-asides and usage).

An additional 20,000 petitions filed for beneficiaries who have earned a master's degree or higher from an American institution of higher education are exempt from the cap.

Moreover, H1B workers who are petitioned for or employed at an institution of higher education or its affiliated or related nonprofit entities, a nonprofit research organisation, or a government research organisation, are not subject to this numerical cap, USCIS noted.

Earlier on 17 October, the US Chamber of Commerce had filed a legal challenge to the administration's $1,00,000 fee on H1B visa petitions.

The Trump administration has defended the policy, saying the visa program has long hurt American workers by allowing companies to import talent at the expense of domestic jobs.

The White House had issued a fact sheet, justifying Trump's move to impose an annual fee of USD 100,000 on H1B visa applications, citing concern over US workers being replaced with "lower-paid foreign labour".

The White House stated that the share of IT workers with H1B visas has risen from 32 per cent in FY 2003 to over 65 per cent in recent years, highlighting the growing unemployment among the US citizens due to the H1B visas "abuse".