The Indian IT industry exhaled a sign of relief.                                                                          White House Clarifies H-1B Visa Fee Hike: $100,000 Charge Limited to New Applications Only, Bringing Relief to Tech Industry

September 22, 2025 – The Biden administration has provided crucial clarification on its controversial H-1B visa policy changes, confirming that the newly imposed $100,000 fee will only apply to fresh visa applications and not affect current visa holders or renewals, bringing significant relief to the technology sector and international skilled workers.

Key Policy Details

The new $100,000 payment requirement applies to any new H-1B visa petitions submitted after 12:01 a.m. eastern daylight time on September 21, 2025, including applications for the 2026 lottery cycle. This represents a massive increase from the previous fee structure, which typically ranged from $2,000 to $5,000 depending on various factors.

Critical Clarification Reduces Panic

The White House scrambled to clarify on Saturday that the new $100,000 fee on visas for skilled tech workers only applies to new applicants and not to current visa holders. This clarification came after the initial announcement caused chaos, with U.S. allies expressing concern and their nationals abandoning holidays, business trips and plans to see their families as they raced back to America.

According to USCIS guidance, existing H-1B visa holders are permitted to travel to and from the U.S., though some uncertainty remains about specific re-entry requirements.

Who Is Affected and Who Is Not

Not Affected:

Current H-1B visa holders

Those seeking visa renewals or extensions

H-1B workers already in the United States

Workers traveling on existing valid visas

Affected:

New H-1B visa applications filed after September 21, 2025

Companies applying for fresh H-1B petitions

The 2026 H-1B lottery cycle participants

Industry Response: Relief Mixed with Concerns

The Indian IT industry exhaled a sign of relief on Sunday after the US government clarified that the H-1B visa application fee increase to $100,000 applies only to new applicants and does not affect existing visa holders or renewals.

The White House official’s clarification that the H-1B visa fee of $100,000 would be applicable only to new applicants offered some relief in Indian tech circles. Industry body Nasscom and other technology associations welcomed the clarification, stating it reduces uncertainty about business continuity.

The clarification that the fee is a one-time fee and not annual alleviates concerns on business continuity, and gives companies time to step up skilling and hire more in the U.S.

International Diplomatic Concerns

Despite the clarification, India has raised concerns over the United States’ decision to impose the new $100,000 fee on H-1B skilled worker visa applications, warning that the move could have humanitarian consequences. India’s Foreign Ministry expressed particular concern about the potential impact on families and ongoing immigration processes.

Implementation Timeline and Impact

The new fee structure takes effect immediately for new applications, with the first major impact expected during the 2026 H-1B lottery season. This gives companies and visa applicants several months to prepare for the changed landscape.

The policy change is part of the current administration’s broader immigration reform agenda aimed at prioritizing American workers and reshaping the skilled immigration system. The substantial fee increase is designed to encourage companies to hire domestic workers and reduce reliance on foreign skilled labor.

Looking Ahead: Strategic Implications

Technology companies, particularly those with significant Indian operations, are now reassessing their talent acquisition strategies. Indian tech companies are expected to accelerate local hiring in America as a response to the policy changes.

The clarification, while providing immediate relief to existing visa holders, signals a significant shift in U.S. immigration policy that will likely reshape how companies approach international talent recruitment and deployment strategies in the coming years.

Bottom Line

While the White House clarification has eased immediate concerns for current H-1B holders, the policy represents a fundamental change in the U.S. approach to skilled immigration. The $100,000 fee for new applications will likely serve as a significant barrier to entry, potentially reducing the number of H-1B applications and encouraging greater domestic hiring in the technology sector.