Some major users of the H-1B visa program may face millions in extra immigration costs due to a proposed Department of Homeland Security (DHS) rule. This rule would extend a current $4,000 fee to visa renewal applications. Rather than imposing a new charge or raising current fees, DHS aims to broaden the application of a law Congress passed in 2015. This law outlines when certain employers must pay this surcharge. The rule has reached the final-rule stage in the federal regulatory agenda but is not yet final.
Should the rule become effective, employers covered under it must pay the fee on H-1B and L-1 extension petitions, in addition to initial applications already charged. Adam Klein, former DHS official, noted the potential impact on high-volume sponsors. Filing 1,000 extensions could result in $4 million in extra fees. Although DHS has not finalized the rule or set an effective date, its provisions might change before implementation.
A U.S. Customs and Border Patrol spokesperson stated that CBP continues to consider public feedback on the proposed rule. They are working with DHS on any changes resulting from input concerning the 9-11 Response & Biometric Entry-Exit Fee for H-1B and L-1 visas. A publication date remains undetermined.
Companies Impacted
The added costs could heavily hit employers filing large numbers of H-1B extensions. According to U.S. Citizenship and Immigration Services data, companies like Amazon, Tata Consultancy Services, Infosys, Apple, and Microsoft receive thousands of H-1B approvals each year. The rule would target certain employers meeting specific criteria for covered extension petitions, so actual costs might be less than total filing volumes.
The H-1B program allows hiring of foreign professionals in fields requiring at least a bachelor’s degree. L-1 visas enable multinational firms to transfer specialized managers and employees to the U.S. H-1B is common in industries like technology, engineering, healthcare, and finance. There is debate over the program’s impact on U.S. workers, with some viewing it as a threat to wages and susceptible to misuse. Proponents argue it helps fill roles that are challenging to staff domestically.
Trump Administration’s Influence
The Trump administration sought several H-1B program changes, increasing employer costs and adjusting visa allocation. One proposal tried to impose a $100,000 fee on certain new H-1B petitions, but a federal judge eventually blocked it. Further, there was a push to replace the traditional lottery with a wage-based selection, favoring higher-paid applicants.
The rule applies to employers with at least 50 U.S. workers, over half in H-1B or L-1 status. Major IT consulting firms, outsourcing companies, and top visa sponsors fall within this category. Klein mentioned the new costs could affect workforce planning, immigration budget allocations, and employee sponsorship choices. The fee’s most significant impact may lie in retention because extension petitions concern already trained employees. Klein highlighted this shift from an initial hiring cost to a continuous expense as crucial for retaining employees.