Recent international graduates sponsored for H-1B status while living in the United States will not have to pay the new $100,000 visa petition fee, according to updated guidance released by the US Citizenship and Immigration Services (USCIS) on Monday.

The clarification comes after President Donald Trump’s September 19 proclamation that introduced the fee, described as one of his administration’s most disruptive steps affecting foreign workers in the US. The fee was intended to reduce perceived misuse of the H-1B program, which is widely used by technology companies. However, experts and businesses warned that it could seriously disrupt industries that rely on skilled foreign talent.

According to the new USCIS guidance, foreign workers applying for amendments, extensions, or changes of status while inside the US are not required to pay the fee. Current H-1B holders are also free to travel in and out of the country without any restrictions.

An online payment system has been set up for the $100,000 fee, which will only apply to new petitions filed for workers outside the US or for those who need to leave the country before their petition is processed.

The USCIS statement clarified, “petitions that are requesting an amendment, change of status, or extension of stay for an alien inside the United States where the alien is granted such amendment, change, or extension” are exempt.

No broad exemptions were announced for specific industries or roles, but employers can request an exception if the position is in the national interest and no American worker is available.

A coalition of healthcare providers, labour unions, schools, and religious organisations that recently filed a lawsuit against the administration said the new guidance shows that officials recognise the harm the fee could have caused to workers already in the US.

“Our communities cannot plan around uncertainty, nor can we allow life-saving care, student learning, and scientific research to be held hostage to shifting, arbitrary rules,” the plaintiffs said. “Our lawsuit will continue until the proclamation is blocked and the rule of law restored.”

The updated guidance is the administration’s first detailed explanation since the fee was announced and is seen as an effort to clear up confusion about how it will be applied.