A proposed rule from the Department of Homeland Security (DHS) could lead to higher immigration costs for some of the largest users of the H-1B visa program. This rule aims to widen the scope of an existing $4,000 government fee to cover visa renewal petitions. While the measure does not introduce a new fee, it seeks to enforce a 2015 law that broadens when specific employers must pay this surcharge.
Implications for Employers
If the rule is finalized, it will compel covered employers to pay this ongoing fee on H-1B and L-1 visa renewals. This requirement comes on top of existing petitions that already fall under this charge. Adam Klein, co-founder of Globali.ai and former senior DHS official, noted that employers with large volumes of H-1B renewals could face significant financial impacts. Filing 1,000 extensions might result in an additional $4 million in fees.
Although the final rule has yet to be published, and its effective date remains undetermined, DHS continues to review public input. A spokesperson from U.S. Customs and Border Patrol emphasized that the agency is examining feedback related to the 9-11 Response & Biometric Entry-Exit Fee for these visas but has not established a publication timeline for the final version.
Companies Potentially Affected
The financial burden of the new rule could be particularly heavy for businesses submitting numerous H-1B renewal petitions. According to U.S. Citizenship and Immigration Services data, companies like Amazon, Tata Consultancy Services, Infosys, Apple, and Microsoft consistently obtain thousands of H-1B petition approvals each year. However, the rule would apply only to eligible employers and applicable extension petitions, making the actual costs lower than total filing volumes indicate.
The H-1B visa enables U.S. firms to recruit foreign professionals for specialized roles needing at least a bachelor’s degree. Meanwhile, the L-1 visa permits multinational companies to transfer specific high-level employees to the U.S.
Support and Criticism
The H-1B program is commonly utilized in technology, engineering, healthcare, and finance sectors. Critics, including some conservatives, argue it might suppress American wages and could be prone to misuse. On the other hand, supporters assert the program assists employers in attracting highly skilled workers for hard-to-fill positions in the U.S.
Trump Administration’s H-1B Reforms
Under the Trump administration, several reforms aimed at increasing costs for certain H-1B employers were proposed. One such proposal sought a $100,000 fee on some new H-1B petitions from abroad. However, a federal judge blocked this measure, and an appeals court upheld the decision. The administration also pushed for a wage-based lottery system that would prioritize higher-paid applicants over the traditional system.
The proposed rule targets employers with over 50 U.S. employees, where more than half the workforce holds H-1B or L-1 status. This group primarily includes major IT consulting and outsourcing firms, along with other high-volume visa sponsors.
Impact on Workforce Strategy
Adam Klein mentioned that these additional costs might influence how businesses plan their workforce. Companies might reevaluate immigration budgets and the employees they choose to sponsor. The proposal could particularly affect employee retention, as the surcharge turns a one-time hiring cost into a continual expense. Klein stated, “Applying the fee at renewal turns what was principally a hiring cost into a recurring cost of keeping that employee.”