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Decoding Trump's H-1B Fee Proclamation: Understanding the Vital Section 1(c) Exemption

  • Nishadil
  • September 21, 2025
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  • 3 minutes read
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Decoding Trump's H-1B Fee Proclamation: Understanding the Vital Section 1(c) Exemption

In the intricate landscape of U.S. immigration policy, pronouncements from the executive branch often bring significant shifts, and former President Donald Trump's H-1B fee proclamation was no exception. This pivotal announcement sent ripples through the H-1B visa program, affecting countless skilled workers and the organizations that sought to employ them.

While the proclamation introduced an increase in certain visa processing fees, it also contained a crucial provision – Section 1(c) – which offered a vital exemption to specific categories of petitioners and beneficiaries, providing a measure of relief amidst the new regulations.

At its core, Trump's proclamation aimed to suspend the entry of certain H-1B, H-2B, J, and L nonimmigrants, citing economic impacts during the pandemic.

Beyond the entry suspension, it also mandated an increase in the Public Law 114-113 fees for certain H-1B petitioners. These fees, often referred to as the 'fraud prevention and detection fee' and the 'American Competitiveness and Workforce Improvement Act of 1998' fee, contribute significantly to the overall cost of an H-1B petition.

For many businesses and foreign professionals, these escalating costs represented a considerable new hurdle.

However, Section 1(c) of the proclamation carved out important exceptions, recognizing the unique contributions of certain sectors and individuals. This section effectively stated that the increased fees would not apply to specific H-1B petitions.

Understanding these exemptions became paramount for organizations and individuals navigating the revised H-1B framework.

So, who exactly qualified for this crucial relief? The proclamation outlined several distinct categories:

  • Exempt Organizations: H-1B petitioners who are "exempt organizations" as described in Section 501(c)(3) of the Internal Revenue Code were spared from the additional fees.

    This primarily includes non-profit organizations, educational institutions, and certain research entities that operate without a profit motive and serve public interest or charitable purposes.

  • Employment by Exempt Organizations: If an H-1B petition was filed for a beneficiary who would primarily be employed by one of these aforementioned exempt organizations, the increased fees would not apply.

    This ensures that non-profits and academic institutions could continue to attract and retain vital talent without facing punitive financial burdens.

  • Highly Educated Individuals: A significant exemption was granted to beneficiaries who had earned a master's degree or a higher degree from a U.S.

    institution of higher education. This provision underscored a recognition of the value and investment in advanced education within the United States, encouraging highly skilled graduates to remain and contribute to the American economy and innovation.

  • Specific Employment Sectors: Beyond general employment by exempt organizations, the exemption also covered beneficiaries primarily employed in a specialty occupation by:

    • An institution of higher education or a related or affiliated non-profit entity.
    • A non-profit research organization.
    • A governmental research organization.
    This further solidified the intent to protect and promote talent within critical sectors like academia, scientific research, and government-led innovation, which are often foundational to long-term economic growth and societal advancement.

In essence, Section 1(c) acted as a strategic counterbalance within the broader proclamation.

While the general sentiment was one of restriction and increased costs for some, this specific carve-out aimed to safeguard the ability of non-profits, educational institutions, and highly skilled U.S.-educated professionals to continue their vital work. It acknowledged that not all H-1B filings are equal in their economic impact or strategic importance, providing a targeted relief mechanism.

For those navigating the complexities of H-1B visas during that period, meticulously reviewing the Federal Register notice and understanding the specific criteria for Section 1(c) exemption was absolutely critical.

It highlighted the nuanced nature of immigration policy and the importance of staying informed about every detail that could impact eligibility and financial obligations. This exemption served as a reminder that even within broad policy shifts, specific provisions can offer crucial support to key segments of the workforce and economy.

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Disclaimer: This article was generated in part using artificial intelligence and may contain errors or omissions. The content is provided for informational purposes only and does not constitute professional advice. We makes no representations or warranties regarding its accuracy, completeness, or reliability. Readers are advised to verify the information independently before relying on