Washington: In a significant development for Indian professionals and students in the US, the Donald Trump administration has clarified exemptions to the controversial $100,000 H1B visa fee introduced via a presidential proclamation in September.

The Trump Administration has issued clarification on who must pay the H1B fee, payment methods, and exception application processes, along with a big relief for students.

"The Proclamation applies to new H1B petitions filed at or after 12.01 am eastern daylight time on September 21, 2025, on behalf of beneficiaries who are outside the United States and do not have a valid H1B visa," the United States Citizenship and Immigration Services (USCIS) said in a statement.

"The Proclamation also applies if a petition filed at or after 12.01 am eastern daylight time on September 21, 2025, requests consular notification, port of entry notification, or pre-flight inspection for an alien in the United States," it added.

The most significant relief for employers is the USCIS clarification that the $100,000 fee does not apply to "change of status" cases - where individuals switch from one visa category to another without leaving the United States, such as transitioning from an F-1 student visa to an H1B work visa.

The contentious proclamation, which imposes an H1B visa fee of nearly Rs 89 lakh, was introduced on September 19. The proclamation had sown confusion among employers and applicants as the earlier directives left key questions unresolved.