By Kavita Mistry 
In a major development, current H-1B visa holders and F-1 international students in the U.S. are set to benefit from new guidance released by the Trump administration. The updated policy exempts U.S. employers from paying the massive $100,000 petition fee when hiring F-1 students or extending existing H-1B workers’ stay.
The guidance, issued on October 20, 2025, clarifies that the hefty fee will not apply unless the U.S. Citizenship and Immigration Services (USCIS) finds the petition ineligible.
Who Benefits Under the New Rule
F-1 students looking to transition to H-1B status are now in a favorable position. Employers can sponsor their visa change by filing Form I-129 (Petition for a Nonimmigrant Worker) without the additional financial burden.
Likewise, current H-1B visa holders applying for an extension of stay will also be exempt, making it easier for U.S. employers to retain skilled foreign professionals without incurring heavy costs.
The new rule is particularly beneficial for laid-off H-1B holders within their 60-day grace period, as potential employers can rehire them more easily.
Who Is Not Covered
The exemption does not apply to nonimmigrants outside the U.S. or those seeking consular processing or port-of-entry admission. This means new applicants abroad still fall under the Trump administration’s earlier Proclamation on Restriction of Entry of Certain Nonimmigrant Workers, effective September 21, 2025.
Those entering the U.S. for the first time on H-1B visas must still comply with all visa fees and scrutiny at U.S. ports of entry.
A Step Toward Reform
Introduced under President Trump’s broader immigration reforms, the policy aims to make the H-1B system more “selective” while easing the process for those already contributing to the U.S. economy.
With this new rule, both international students and H-1B professionals in the U.S. find themselves—at least for now—on the right side of the system.