Context:
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The U.S. government clarified that the newly announced $100,000 one-time fee for H-1B visas will not apply to cases involving change of status or extensions of stay.
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This provides major relief to thousands of Indian professionals, who form the largest share of H-1B workers in the U.S.
Key Highlights:
Government Proclamation / Policy Details
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President Donald Trump’s proclamation (September 19, 2025) imposed a $100,000 fee on H-1B visas.
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The fee applies only to new H-1B visa applications.
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It will not affect:
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Extension petitions
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Change of status applications
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Previously issued valid H-1B visas
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USCIS Guidelines & Cut-off Date
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The USCIS clarified that the proclamation does not apply to:
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Petitions filed before September 21, 2025
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Existing visa holders already in the U.S.
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Stakeholders Involved
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Indian IT professionals (around 70% of total H-1B holders)
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Major employers like:
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Amazon (10,044 approvals in 2025)
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Tata Consultancy Services – TCS (5,505 approvals in 2025)
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U.S. Chamber of Commerce, which has filed a lawsuit against the fee
Significance / Concerns
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Provides stability for current H-1B workers and employers.
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Raises concerns over policy unpredictability and potential barriers to skilled migration.
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Legal challenge highlights possible conflict with existing immigration laws.
Relevant Prelims Points:
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H-1B Visa: A non-immigrant visa allowing U.S. companies to employ foreign workers in specialty occupations.
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USCIS: Agency responsible for lawful immigration processes in the U.S.
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Immigration and Nationality Act (INA): Core U.S. law governing immigration and citizenship.
Issue + Causes
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Rising U.S. policy focus on restricting foreign labour inflow.
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Fee introduced as part of stricter immigration measures.
Benefits
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Current H-1B holders can continue:
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Working legally
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Extending stay
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Traveling internationally
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Challenges / Impact
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New applicants may face heavy financial burden.
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May reduce access for skilled foreign workers, especially from India.
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Could affect India–U.S. people-to-people ties and IT sector mobility.
Relevant Mains Points:
Facts & Provisions
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Fee is a one-time charge applicable only to new H-1B visa petitions.
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Lawsuit argues the proclamation overrides provisions of the INA.
India–U.S. Dimension
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About 7.3 lakh H-1B holders were in the U.S. as of January 2025.
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Indian citizens constitute nearly 70%, making this issue crucial for bilateral relations.
Conceptual Linkages
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Skilled migration as part of global labour mobility
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Immigration policies impacting diaspora diplomacy
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Role of legal checks in democratic governance
Way Forward
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Balanced immigration reforms ensuring:
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Protection of domestic workforce
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Continued inflow of global talent
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Strengthening India–U.S. cooperation on mobility frameworks.
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Transparent visa regulations to avoid uncertainty for professionals and employers.
UPSC Relevance (GS-wise):
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GS 2 (International Relations): India–U.S. diaspora and mobility issues
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GS 2 (Polity & Governance): Immigration laws, executive proclamations, legal challenges
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Prelims: H-1B visa, USCIS, Immigration and Nationality Act