Big Win for Skilled Workers: America’s Updated Immigration Policy Benefits H-1B and F-1 Visa Holders

In a significant move in U.S. immigration policy, the Donald Trump administration has rolled out clarifications and new guidance that affect the highly-skilled worker visa programme H‑1B visa and international students holding the F‑1 visa. Although the earlier announced landmark changes had stirred concern internationally, the updated rules include key exemptions and pathways that provide relief to many visa-holders already in the United States.

Background: What triggered the change?

On September 19, 2025, President Trump signed a presidential proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers” that proposed sweeping changes to the H-1B programme. The new rule would require U.S. employers to pay a US$100,000 supplemental fee for each H-1B beneficiary outside the United States, before the applicant could enter the country.

At the same time, accompanying changes promised to raise prevailing wage levels for H-1B workers, favour higher-skill and higher‐pay petitions, and restrict those applications seen as replacing U.S. workers with cheaper foreign labour.

These announcements sent immediate ripples through the tech and higher-education sectors—including companies that rely heavily on H-1B talent and universities with large populations of F-1 international students. The uncertainty around travel, change-of-status, renewal and extension options triggered panic among students and professionals alike.

What the updated guidance clarifies: relief for those inside the U.S.

In the weeks following the proclamation, the United States Citizenship and Immigration Services (USCIS) and the Department of Homeland Security (DHS) released additional guidance that notably eases the burden for many U.S-based visa holders:

• The new US$100,000 fee does not apply to H-1B visa holders who are already in the U.S. under valid status, or to petitions filed before 12:01 a.m. ET on September 21, 2025.
• Crucially for F-1 students, the guidance confirms that change of status from F-1 to H-1B (while inside the U.S.) is exempt from the $100,000 fee. This means many international students poised to transition to H-1B via Optional Practical Training (OPT) or STEM-OPT are not subject to the fee so long as the change is processed domestically rather than via consular exit and re-entry.
• The rule also gives employers and visa applicants more time to assess strategy: current H-1B holders remain unaffected by the fee for renewals or amendments if they are inside the U.S.

These clarifications mean that although the headline rule appears tough, its practical impact for many visa holders already in the U.S. will be much more manageable than initially feared.

Why F–1 students stand to benefit

For international students pursuing higher education in the U.S., the F-1 visa is the most common pathway. After completing their program, many transition through OPT or STEM-OPT before moving to H-1B status. Under the earlier proposal, there was concern the new H-1B fee and stricter rules could block this path.

Now, because the $100,000 fee does not apply to the change-of-status scenario for F-1 students, this opens the following possibilities:

• Students on F-1 status who file an H-1B petition from within the U.S. (i.e., change of status) are not subject to the fee.
• They can continue working under OPT or STEM-OPT and then transition smoothly to H-1B without needing to leave the U.S. and pay the large fee.
• This also means fewer disruptions to employment authorizations and less risk of being caught in travel/entry delays while waiting for consular action.

In short, the updated policy protects the key pipeline that links U.S. education to U.S. work opportunities for many thousands of international students.

Key groups still affected: what to watch out for

While the clarifications offer relief for many, there remain important caveats:

• The $100,000 fee does still apply to new H-1B petitions for beneficiaries who are outside the U.S. as of the effective date and enter via consular processing. Such applications must comply with the payment requirement before issuance.
• International students or H-1B applicants who exit the U.S. and attempt to re-enter or change status via consular route may trigger the fee.
• The proposed wage changes and prioritisation of higher-paid H-1B petitions remain under rulemaking and could affect employer willingness to sponsor younger or lower‐paid talent.
• Some proposed rules concerning F-1 students (such as limiting “duration of status” or the ability to change degree levels) remain under discussion and may introduce longer-term changes.

Thus, while the updated guidance offers much-needed relief, the risk environment and employer strategy will continue to shift.

Employer and institutional reaction

Employers and universities have expressed mixed responses. On one hand, the relief for in-U.S. change-of-status petitions provides clarity for their existing workforce. On the other, the larger context signals a tougher regulatory environment and higher cost of hiring foreign talent, especially via consular processing.

One leading immigration counsel noted:

“Employers will now distinguish clearly between U.S-based change-of-status and outside-the-U.S. entry for H-1B sponsorship. The fee and entry-restriction regime will favour those already in the U.S.”

Universities with large international student populations welcomed the clarification for F-1 students. But student-services directors remain cautious due to proposed upcoming changes on student duration and transfer rules.

What students and applicants should do now

Given the evolving environment, international students, workers and sponsors should consider the following steps:

1. Stay in the U.S. if already on F-1 or H-1B status, unless travel is essential—exit and re-entry may trigger fee or processing changes.
2. Change of Status inside the U.S. is the safer route for F-1 → H-1B transitions, avoiding the $100,000 fee.
3. Consult your employer or university’s immigration counsel to understand how the new policies apply to your specific case (especially if considering consular overseas stamping).
4. Monitor the rulemaking process for wage changes, selection priorities and duration-of-status reforms, which may impact future visas.
5. Ensure your status remains valid, maintain required employment or academic standing and avoid any gaps that can complicate future petitions.

Why this matters: the larger significance

These developments matter on several levels:

• Talent pipeline to U.S. economy: The H-1B programme has long been a pathway for global STEM talent into U.S. companies; the changes signal a recalibration of that pathway—favouring domestic change-of-status and higher-wage roles.
• Higher education impact: The F-1 student pipeline feeds U.S. universities, research institutions and the broader economy. Ensuring clarity for F-1 → H-1B transitions helps maintain U.S. competitiveness in global talent attraction.
• Employer strategy shift: U.S. and global employers will restructure how they sponsor foreign workers—focusing on U.S.-based transitions rather than consular entries, and paying attention to wage thresholds and visa cost implications.
• Visa policy signalling: The announcement is part of a broader shift towards merit-based, higher-value immigration; the exemptions and clarifications reflect political balancing—keeping the door open for skilled workers while tightening cost and oversight.

For international students on F-1 visas and H-1B workers already in the United States, the recent clarifications bring welcome relief. The exemption of the $100,000 fee for domestic change-of-status and existing visa holders removes immediate disruption for many. However, the broader context—rising fees, selection prioritisation, wage reforms and proposed constraints on student duration—means the immigration landscape is changing, not static.

Applicants and sponsors should take advantage of the present clarity but remain vigilant. Secure your status, plan ahead, engage good counsel and recognise that this is a medium- to long-term shift in U.S. immigration policy, not just a temporary patch.

For those already studying or working in the U.S., the message is: You are protected for now, but future sponsorship, visa strategy and mobility may require new planning.