New York/Washington, 21 Sep

The Trump administration has clarified that the new USD 100,000 fee for H1B visas is a one-time payment applicable only to new petitions and does not apply to current visa holders, providing a huge relief for thousands of concerned professionals working in the US, including from India.

The US Citizenship and Immigration Services (USCIS) said in a statement on Saturday that President Trump's new H1B visa requirement applies only to new, prospective petitions that have not yet been filed.

H1B petitions submitted before the effective proclamation date of 21 September are not affected. Those visa holders currently outside the US also do not need to pay the fee for re-entering the country.

A White House official told PTI that the USD 100,000 fee is a one-time charge that applies only to the petition. "It only applies to new visas, not renewals or current visa holders. It will first apply in the upcoming lottery cycle. It does not apply to 2025 lottery winners."

White House Spokesperson Taylor Rogers told PTI that President Trump "promised to put American workers first, and this common sense action does just that by discouraging companies from spamming the system and driving down wages."

"It also gives certainty to American businesses that actually want to bring high-skilled workers to our great country but have been trampled on by abuses of the system," she said.

In a memorandum, USCIS Director Joseph Edlow wrote that the proclamation - 'Restriction on Entry of Certain Nonimmigrant Workers' - issued by President Trump on Friday only applies prospectively to petitions that have not yet been filed.

The proclamation does not apply to individuals who "are the beneficiaries of petitions that were filed prior to the effective date of the proclamation, are the beneficiaries of currently approved petitions, or are in possession of validly issued H1B non-immigrant visas".

"All officers of the United States Citizenship and Immigration Services shall ensure that their decisions are consistent with this guidance. The proclamation does not impact the ability of any current visa holder to travel to or from the United States," the memo said.

White House Press Secretary Karoline Leavitt said on X that "to be clear", the USD 100,000 is not an annual but a one-time fee that applies only to the petition.

"Those who already hold H-1B visas and are currently outside of the country will not be charged USD 100,000 to re-enter. H-1B visa holders can leave and re-enter the country to the same extent as they normally would; whatever ability they have to do that is not impacted by yesterday’s proclamation," she said.

Leavitt added that the proclamation applies only to new visas, not renewals, and not current visa holders and will first apply in the next upcoming lottery cycle.

The clarification sent a huge wave of relief among Indian professionals on H1B visas in the US, who had been gripped with panic, fear and concern after Trump signed the proclamation.

When asked if the hiked fee would apply to the H1B visa holders already in the country, for renewals or for those applying for the first time, Commerce Secretary Howard Lutnick had said on Friday, "Renewals, first times, the company needs to decide. Is that person valuable enough to have a USD 100,000 a year payment to the government? Or they should head home, and they should go hire an American."

"It can be a total of six years, so $100,000 a year. So either the person is very valuable to the company and America, or they're going to depart, and the company is going to hire an American.

"That’s the point of immigration -- hire Americans and make sure the people coming in are the top people. Stop the nonsense of letting people just come into this country on these visas that were given away for free. The President is crystal clear. Valuable people only for America. Stop the nonsense," Lutnick had said.

Widespread panic, confusion and concern had gripped Indians in the US on H1B visas in the hours after Trump's order to impose the fee, with many cancelling travel plans at the last minute while waiting to board flights to the homeland and several others already in India were scrambling to return.

Immigration attorneys and companies sounded the alarm for H1B visa holders or their family members currently outside the US for work or vacation, asking them to return to the US before the proclamation kicked in on 21 September.

The H1B is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. Technology companies depend on it to hire tens of thousands of employees each year from countries like India and China.

Under a Congressional-mandated cap, the US can issue a maximum of 65,000 H1B visas every year and another 20,000 to those who have obtained master's and higher degrees from the US. The current H1B visa fee ranges from about USD 2,000 to USD 5,000, depending on employer size and other costs.

The initial registration period for the 2027 fiscal year H-1B cap is expected to open around March next year. Last year, there was a USD 215 H-1B registration fee for each registration submitted on behalf of each beneficiary.

The H1B visas, which are very popular among Indian tech professionals, are valid for three years and can be renewed for another three years.