Even as Washington’s decision to ease H-1B visa fees offers short-term relief for thousands of Indian students and professionals, it may not be the full picture. The Global Trade Research Initiative (GTRI) has warned that the Trump administration’s volatile immigration policies could ultimately disrupt India’s future talent flow to the US.
US caps intl students’ intake
On October 21, the US Citizenship and Immigration Services (USCIS) clarified that those who already hold valid visas, including students (F-1 visa holders) and professionals currently in the country, will not be required to pay the new fee announced last month.
While the move has been welcomed by the Indian community, it comes alongside a new rule that might not be good news. The Trump administration earlier placed a cap on foreign student admissions, limiting them to 15% of total university intake, followed by a memo sent to nine universities known for enrolling large numbers of international students. From each country, only up to 5 percent of students can now be enrolled. For instance, if you’re an Indian student, no matter how qualified you are, the university can admit only 5 percent of Indian applicants.
The Global Trade Research Initiative (GTRI) warned that the two policy directions “pull in opposite ways.” It will ease rules for those already in the US, but tighten entry for new students. “Trump’s parallel cap on foreign students, only 15 per cent of total students can be from abroad, and no more than 5 per cent from one country makes it harder for Indians to study in the U.S. and later get work visas,” GTRI said.
India currently sends the largest number of foreign students to the US. The number exceeds 3.3 lakh currently, and Indians make up about 70% of all H-1B visa holders. The new restrictions could therefore hit the ‘American dream’ of students hoping to study and work in America.
The think tank also added that the frequent policy shifts under the Trump administration have made it difficult for Indian tech firms and professionals to plan for the long term. “The volatility in US immigration policy has become a bigger concern than the fee itself,” GTRI said.
US clarifies who needs to pay the new H-1B fee
USCIS clarification applies to people already on F-1 student visas transitioning to H-1B work status, and to those switching from intra-company L-1 visas to H-1B. It also includes individuals looking to extend or renew their H-1B visas. Back in September, the US had already clarified that the rule would not affect those who already hold H-1B visas.
According to the agency, the September 19 proclamation imposing the $100,000 charge “does not apply to a petition filed at or after 12:01 a.m. EDT on September 21, 2025, requesting an amendment, change of status, or extension of stay” for anyone already in the US. Those with valid visas can even leave the country and re-enter without being asked to pay the additional fee. The announcement alone protects around 300,000 Indian professionals and students already in the US from the hefty cost.
The $100,000 fee, first announced on September 19, was criticised in both Washington and New Delhi. The US Chamber of Commerce even sued the administration, slamming the fee as arbitrary and harmful to American businesses that rely on skilled foreign workers.After the announcement, confusion ran rampant among H-1B holders, with some rushing back to the US to avoid being affected by the new rule.