The US Department of Homeland Security has released updated guidance on the $100,000 application fee, offering a number of exemptions and carveouts, which is a significant relief for foreign workers on H-1B visas.

The new rules state that employees who transfer from another visa category, like F-1 student status, to H-1B visa status would not be charged the $100,000 cost.

The substantial payment will not be applied to H-1B employees who are requesting an amendment, change of status, or extension of stay in the United States. Furthermore, entry and exit from the United States will not be restricted for any current H-1B visa holders.

Only new visa petitioners who are not in the United States and do not currently possess a valid H-1B visa are covered by the proclamation. Additionally, it offered a link for new applications to pay online.

The clarification was made just two days after the largest business organization in the nation, the US Chamber of Commerce, sued the Trump administration for the new regulations, claiming they were “illegal.”

The plaintiff claimed that if the visa fee is imposed, it will “inflict significant harm on American businesses” and compel them to “either drastically increase their labor costs or hire fewer highly skilled employees for whom domestic replacements are not readily available” in a lawsuit submitted on Thursday to the Washington district court.

Trump’s September 19 declaration was also described as “blatantly illegal” and a “boon to America’s economic rivals.”

Following a lawsuit against the Trump administration on October 3 by a combination of unions, educators, and religious organizations, it was the second significant domestic legal challenge to the new H-1B regulations.

Trump had stated that the “incentive is to hire American workers” when he signed the decree in September.

The proclamation created a great deal of confusion because it appeared to affect current H-1B visa holders, who would encounter difficulties when trying to return to the United States.

According to a clarification released by the White House, this is a “one-time fee” that only applies to new visas—not renewals or existing visa holders.

Over 70% of all H1-B visas granted in 2024 went to workers who were born in India, mostly as a result of a significant backlog in applications and a large number of highly qualified Indian immigrants.