US clarifies $100,000 H-1B fee rule after lawsuit — Check who gets exemptions and what?

In a significant relief for foreign professionals, the US Department of Homeland Security (DHS) has issued new guidance on the controversial $100,000 visa application fee, outlining several exemptions. Under the new rules, individuals transitioning to H-1B visa status from other visa categories, such as F-1 student visas, will not be required to pay the fee.

Additionally, H-1B holders filing amendments, status changes, or extensions within the US are exempt from the charge, and current visa holders will continue to be allowed entry and exit from the country. The rule applies only to new applicants who are outside the US without a valid H-1B visa. It also includes an online payment option for new applications.

The clarification followed just two days after the US Chamber of Commerce, the biggest business organisation of the US, sued the Trump administration over the new rules, labelling it “unlawful," as per the IANS report.

How does the visa fee impact American businesses?

Based on the lawsuit registered in the district court in Washington on Thursday, the plaintiff argued that if the visa fee is implemented, it will affect American businesses and drive them to either dramatically spike their labour costs or hire fewer highly skilled employees for whom domestic replacements are not readily available.

It statement further described Trump's September 19 proclamation as “plainly unlawful” and a “boon to America's economic rivals." This marked the second major domestic legal challenge against the new H-1B regulations, after a lawsuit filed by a group of unions, education professionals and religious bodies sued the Trump administration on October 3.

Meanwhile, while signing the proclamation in September, Trump had stated that the “incentive is to hire American workers.” This proclamation caused immense confusion as it appears to suggest that it would affect the current H-1B visa holders, who might experience challenges in returning to the United States.

The White House clarified on September 20 and assured that this is a “one-time fee” which applies only to new visas and not renewals or current visa holders. Meanwhile, due to a large backlog in approvals and a high number of skilled immigrants, India-born workers received over 70 per cent of the total approved H1-B visas in 2024.