US eases H-1B fee for existing Indian visa holders but caps foreign student admissions

The US government’s latest adjustments to the H-1B visa regime are offering temporary relief to thousands of Indian professionals and students, but new restrictions on international student admissions could curb the long-term flow of talent, experts warn.

On Oct 21, US Citizenship and Immigration Services confirmed that existing visa holders and students in the United States will not have to pay the previously announced $100,000 H-1B fee.

The exemption applies to students moving from F-1 to H-1B status and professionals transitioning from L-1 to H-1B visas, ensuring continuity for a significant portion of the Indian diaspora.

“This ensures continuity for thousands of Indian students and skilled professionals in the US, who can now transition to work visas without incurring exorbitant costs or leaving the country,” the Global Trade Research Initiative (GTRI) report said.

Indians make up nearly 70% of all H-1B visa holders and 27% of international students in US universities, highlighting the importance of the exemption.

The revised policy also protects current H-1B workers from retroactive fees and allows the Department of Homeland Security to waive costs in cases considered to be in the national interest.

However, the relief is paired with a stricter cap on foreign student admissions. Only 15% of total university intake can now be allocated to international students, with no more than 5% coming from any single country.

“Trump’s parallel cap on foreign students, only 15% of total students can be from abroad, and no more than 5% from one country makes it harder for Indians to study in the US and later get work visas,” the GTRI report notes.

“The two measures pull in opposite directions; one facilitates visa transitions for those already in the US, while the other tightens entry for new students,” the report added.

The think tank also warned that frequent policy reversals have created uncertainty for Indian IT firms and professionals considering long-term mobility in the US.

“The volatility in US immigration policy has become a greater concern than the fee itself,” the report added.

While the Oct 21 clarifications stabilize the situation for roughly 300,000 Indian professionals currently in the United States, the combination of capped student admissions and unpredictable policy shifts may prompt future applicants to explore alternative education and career options.

For Indian students and professionals, navigating the US visa landscape now requires both agility and strategic planning.