In a significant clarification, the US Department of Homeland Security (DHS) has announced that the newly imposed $100,000 H-1B visa fee will not apply to existing visa holders, renewals, or status changes within the country. The decision comes as a major relief for thousands of skilled foreign workers, particularly from India, who dominate the H-1B visa category.

According to the DHS guidance, the steep fee applies only to new H-1B petitions filed by applicants currently outside the United States who do not possess a valid visa. Workers already in the US under other categories — such as F-1 student or L-1 intra-company transfer — and switching to H-1B status will not be required to pay the new amount.

The update comes amid growing backlash from businesses and worker groups. The US Chamber of Commerce, the nation’s largest business lobby, has filed a lawsuit challenging the rule, calling it “unlawful” and warning it would “inflict significant harm on American businesses.”

The lawsuit argues that the Trump administration’s proclamation, signed on September 19, would increase labor costs and hinder the hiring of highly skilled professionals for roles that cannot easily be filled domestically. The White House, however, maintains that the fee is a “one-time measure” intended to encourage employers to “hire American workers.”

The policy had initially caused widespread confusion, with fears that current H-1B holders could face re-entry restrictions or additional costs. Clarifying the matter, DHS confirmed that current visa holders remain unaffected and can travel freely.

India remains the largest beneficiary of H-1B visas, accounting for more than 70 percent of approvals in 2024, underscoring the program’s importance to the Indian tech sector and U.S. innovation ecosystem.