Trump Admin Walking Back Visa Stipulations: Relief For H1B Visa Holders, Students

India-West Staff Reporter

WASHINGTON, DC – Days after the US Chamber of Commerce and earlier a coalition of labor unions, schools, healthcare providers, faith groups, and individual workers filed suit, the U.S. Citizenship and Immigration Services (USCIS) quietly updated its website with a major clarification on the controversial $100,000 H-1B visa fee.

The move comes amid widespread confusion over recent fee hikes, a sharp decline in foreign student arrivals, and multiple legal challenges to the Trump-Vance administration’s so-called “Innovation Ban.”

USCIS confirmed that the $100,000 fee generally does not apply to individuals already in the United States who are changing their status to H-1B, provided the agency approves the change. This includes current H-1B visa holders, F-1 student visa holders, L-1 intra-company transferees, and international graduates sponsored for H-1B status.

The agency clarified that the fee “does not apply to any previously issued and currently valid H-1B visas, or any petitions submitted prior to 12:01 a.m. ET on September 21, 2025.” H-1B holders can continue traveling in and out of the U.S. without restriction.

The clarification provides major relief for students and workers in the U.S., as well as their employers, who feared severe disruptions. Hospitals could have lost medical staff, churches pastors, classrooms teachers, universities researchers, and industries key innovators without timely intervention.

USCIS emphasized that the fee still applies in certain circumstances: for individuals outside the U.S. filing new H-1B petitions, seeking consular processing, or deemed ineligible for a change of status, amendment, or extension of stay.

Indian tech professionals, who form the bulk of H-1B holders, are among the biggest beneficiaries. Roughly 70% of all new H-1B allocations go to Indian nationals—about 300,000 individuals—who rely on these visas as a pathway to middle-class upward mobility. Remittances from these workers also provide a significant economic boost to India. Indian students, who account for 27% of all international students in the US, also gain reassurance, especially given prior strict crackdowns under the Trump administration that included deportations for minor or old violations.

Reacting to the USCIS update, Skye Perryman, President and CEO of Democracy Forward, which represented the coalition in court, said: “Yet again, we are seeing that when confronted by the people in court, this administration often backs off. Today’s policy shift is proof that the Trump-Vance administration knows its unlawful proclamation cannot withstand scrutiny. But partial retreats and fine print are not enough. The President cannot sidestep Congress, destabilize health care, education, and research, and force workers to gamble their futures. We have stopped these abuses before, and we will do it again until this entire unlawful and harmful policy is struck down.”

For more information: https://www.uscis.gov/working-in-the-united-states/h-1b-specialty-occupations