Amidst stringent immigration policies, a surprising exemption has emerged as a beacon of hope for Indian students in the U.S.
According to Breitbart, this exemption from a hefty $100,000 fee on new H-1B visas for migrant students already in the U.S. is seen as a significant opportunity, potentially reversing declining enrollment trends among Indian students.
President Donald Trump announced on Sept. 19, 2025, a new $100,000 fee for H-1B migrants arriving at U.S. airports starting in 2026. This fee targets new petitions for workers entering from outside the country. However, the regulation carves out a notable exception for certain groups.
Under the new rules, migrant students already in the U.S. on F-1 visas are exempt from this fee when transitioning to H-1B status domestically. Similarly, current H-1B holders extending their status or making other domestic status changes are also not required to pay. This distinction has been hailed as a major gap in the policy by many in the Indian community. “HUGE Immigration News!” exclaimed Deedy Das, an Indian migrant, reflecting the excitement among his peers. “If you studied in the US, the [Trump $100,000] fee doesn’t affect you,” Das added. “I’m now positive on this rule!” he concluded, echoing a sentiment of optimism.
Recent years have seen a sharp decline in Indian students enrolling in U.S. universities, with a 44.5% drop in arrivals in August 2025 compared to the prior year. In July 2025, the numbers fell by about 46%, signaling a growing hesitation among prospective students. Applications to U.S. business schools also slumped in 2025, with a 3% decrease in international submissions, according to a survey of nearly 1,200 programs across 41 countries.
Meanwhile, worldwide applications to business-school programs rose by 7% in 2025, with significant increases in East Asia, India, and Europe, as reported by GMAC. However, stricter visa rules in Canada and the U.K. led to even steeper declines in international applications there. Since Trump’s election, many Indian students have started exploring job markets in the U.K., Germany, and Ireland instead of the U.S.
Universities in the U.K., Germany, and Ireland have benefited from this shift, earning revenue by allowing foreign graduates to take jobs that might otherwise go to locals. “The US is no longer as attractive for international students as it once was,” Das noted on Oct. 10, 2025. This sentiment is shared by many facing uncertainties in U.S. visa policies.
An unnamed Indian student considering an MBA in the U.S. shared a friend’s plight, saying, “I know a friend who took $80,000 in debt to get a master’s degree in architecture from a top US university.” “Now her US firm has told her they will not sponsor her for a visa,” the student continued. “So she’s going to come back to India. It’s definitely something I have to consider,” the student admitted.
The exemption is expected to encourage U.S. employers to hire more foreign graduates based in the country for the roughly 110,000 new H-1B visas awarded each year. Work permits through programs like Optional Practical Training (OPT) and Curricular Practical Training (CPT), established under former President George W. Bush, aid these graduates. In 2024, White House officials issued permits to 400,000 foreign graduates, allowing them to take entry-level jobs often sought by American graduates.
Critics argue that many foreign graduates are hired through ethnic networks that may sideline American professionals. CEOs often note that these graduates work longer hours for lower pay, hoping to secure employer nominations for green cards and eventual citizenship. This competition is pushing up to half of new U.S. technology graduates out of their intended career paths.
The H-1B program, with no annual cap on worker inflow, has facilitated a significant rise in foreign STEM labor in the U.S. Between 2000 and 2019, the number of foreign STEM workers more than doubled, from 1.2 million to nearly 2.5 million. During the same period, the foreign share in computer and math occupations grew from 17.7% to 26.1%. American tech workers have voiced concerns about the H-1B program, citing the displacement of domestic graduates and harm to innovation. They also warn of a declining U.S. technological edge over competitors like China. Additionally, the influx of foreign graduates into white-collar roles raises issues of privacy, regulatory enforcement, and national security.
“MASSIVE loophole,” said Charles Kuck, an immigration lawyer, describing the exemption. “[If] You come as a visitor/student/other nonimmigrant visa, you don’t need to pay the fee,” Kuck explained. This perspective underscores the significant advantage for students already in the U.S. “Game change for foreign grads,” remarked Atal Agarwal, an advocate for Indian migrants. “I have never seen anything like this in 30 years,” said Mrinalini Batra, a higher studies counselor, reflecting on the unprecedented nature of the policy. These reactions highlight the potential long-term effects on migration patterns.
President Trump himself addressed the issue on Sept. 19, 2025, stating, “Some employers, using practices now widely adopted by entire sectors, have abused the H-1B statute and its regulations to artificially suppress wages.” He continued, “This results in a disadvantageous labor market for American citizens, while at the same time making it more difficult to attract and retain the highest skilled subset of temporary workers.” Trump emphasized the impact “seen in critical science, technology, engineering, and math (STEM) fields.”
With at least one million Indians already in U.S. white-collar jobs through various visa programs, the new exemption could further shape migration trends. The policy might help reverse the declining interest among Indian students, as reported by the Hindustan Times on Oct. 7, 2025. As the landscape evolves, the balance between opportunity for foreign graduates and challenges for American workers remains a contentious issue.