H-1B fog clears: US clarifies $100k fee applies only to new petitions, eases panic among Indian visa holders

Bengaluru: In a relief to scores of panic-stricken Indians who are on H-1B visas, the US Citizenship and Immigration Services (USCIS) clarified that the $100,000 fee will be applicable only for new petitions and will not impact current holders of the work permit.

"This proclamation only applies for petitions that have not yet been filed," the USCIS said in a memo dated September 20, clarifying the cases the higher visa fee covers. Earlier, it was reported that the fee would be annual and that current H-1B holders travelling outside would face trouble when re-entering the US.

The clarification means those who have their petitions approved or already have visas will not have to pay the new fee of $100,000. Immigration experts said H-1B holders with valid visas and are travelling overseas can re-enter the US without any issues.

The Visa Code founder Gnanamookan Senthurjothi, who was helping more than 20 of his clients who are currently in India and in panic, said they all can rest easy. Some of his clients had come home for renewals and had visa interviews scheduled for the coming week. "There is a sense of relief now after the clarification," he said.

This was a much-needed clarification after the Trump administration's proclamation the day before created a sense of fear and anxiety among the Indians who had come home.

Disruption Among Travellers
The Trump administration’s proclamation the day before created huge anxiety among Indians who were home on a visit.

The proclamation said that companies must pay $100,000 in H-1B visa fees to sponsor employees to work in the US effective Sunday. The order led to alarm. Companies such as Amazon, Microsoft and JP Morgan Chase advised employees against travelling overseas and urged those outside the US to return before Sunday.

According to reports online, dismayed Indians headed home were deplaning midway after learning about the new rule, over fears of being unable to re-enter the US.

Indians are one of the largest beneficiaries of the H-1B visa programme. They accounted for more than 70% of all the work permits issued under the programme in FY24, when China ranks a distant second at 10%. American technology firms, however, are the largest sponsors of the H-1B programme, data shows.

While Indian IT firms have steadily reduced their dependence by around 50% on the once highly sought-after H-1B visas in the last five years as they expanded teams locally in the US, the hefty fee will have an impact on the hiring. ET reported that some startups were recalibrating their US plans to step up hiring in India, instead of H-1B sponsorships.

Industry body Nasscom in a statement on Saturday pointed out the ripple effects on America’s innovation ecosystem and the wider job economy from the shock announcement.