Another exemption! The U.S. issues new guidelines: The $100,000 H-1B visa fee applies only to new applicants outside the U.S.; international students and others are not included.

Another exemption! The U.S. issues new guidelines: The $100,000 H-1B visa fee applies only to new applicants outside the U.S.; international students and others are not included.

On Monday, the US government issued new guidelines that greatly narrowed the scope of the $100,000 H-1B visa fee previously announced by Trump, clarifying that the fee only applies to new visa applicants outside the United States, meaning groups such as international students already in the country will be exempt.

On October 21, according to media reports, US Citizenship and Immigration Services (USCIS) specified in Monday’s guidelines that employers only need to pay this fee after an overseas applicant’s visa is approved to allow them to move to the United States. Previously, the White House had stated that the fee would apply to all new visa applicants, unless their employer or industry qualified for special exemptions.

The actual scope of the new policy will shrink dramatically. According to government statistics, of the approximately 141,000 new H-1B visas issued in 2024, about 54% of holders already held another type of visa and were inside the US at the time of application. If this trend continues, the new fee will not apply to more than half of applicants.

This adjustment will be particularly significant for the tech industry. Top tech companies usually sponsor H-1B visas for international students who are already in the US, especially for those who have graduated and are working under short-term student visa work authorization. These groups will now be exempt from the high fee.

Last month, Trump announced this hefty new fee on H-1B visas, which are the main visa type used by the tech industry, hospitals, and universities, aimed at only attracting the "best" foreign talent.

The announcement triggered several lawsuits, including ones from chambers of commerce and healthcare companies, who argued that Trump overstepped his authority by drastically altering a visa program created by Congress.

Reports said Trump used his travel ban authority to impose the new fee, but legally that power can only apply to individuals not already inside the US. This led many lawyers to question how the policy could have the wide scope promised by the government.

Top tech companies most frequently sponsor H-1B visas for international students, especially those who have graduated and are working for them under short-term student visa work authorization, and they will benefit from the new policy.

By contrast, some IT and consulting firms more commonly hire large numbers of foreigners directly from overseas, the majority of whom are from India. These companies have faced bipartisan criticism, with critics charging that they hire foreigners willing to accept wages lower than comparable American workers.

When Trump signed the policy that created the new fee, he specifically singled out these companies as bad actors. However, when the administration previously attempted to clarify the policy, officials repeatedly hinted that it would apply to everyone in this March’s upcoming visa lottery.

Stuart Anderson, executive director of the National Foundation for American Policy, said: “They may want a broader policy, but the law simply doesn’t support it.”

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