Washington, DC [US], August 10 (ANI): The U.S. Department of Homeland Security (DHS) has expanded a $4,000 fee on H-1B petitions and a $4,500 levy on L-1 petitions to cover visa extensions submitted by certain employers, even when workers remain with the same company.
Scheduled to take effect September 9, the final rule is expected to substantially increase recurring immigration costs for businesses that rely heavily on foreign talent.
The regulation applies exclusively to companies employing at least 50 workers in the United States where more than 50 percent of the domestic workforce collectively holds H-1B, L-1A or L-1B status.
Under the updated mandate, such companies must pay the 9/11 Response and Biometric Entry-Exit Fee every time they seek an extension of status for a covered worker.
Previously, the fee was generally restricted to applications involving initial employment or a change of employer. Extensions filed by an existing employer for the same employee were exempt, provided the separate fraud-prevention fee was not triggered.
Addressing the rationale behind the revision, DHS said, “The regulatory changes correct DHS’s interpretation of statutory language to require that covered employers submit the 9-11 Biometric Fee for all extension of status petitions, regardless of whether the related fraud prevention and detection fee applies.”
While the actual fee rates remain unchanged, the adjustment significantly expands the number of applications subject to the existing charges.
Affected employers will incur $4,000 for each qualifying H-1B application and $4,500 for each L-1 filing. Amended petitions that do not request an extension of the worker’s authorized stay will remain exempt.
The financial obligation rests entirely with the employer, with DHS rejecting proposals that would allow foreign professionals to pay the fee if their companies were unwilling to do so.
Clarifying the requirement, the department stated, “The statutes and existing regulations specify that the fee is required to be paid by the employer.”
Federal documentation acknowledged potential indirect effects on Indian technology professionals and other skilled foreign workers if companies reconsider the costs associated with repeated visa extensions.
Industry stakeholders had warned that rising costs could discourage organizations from retaining H-1B workers, suppress legal immigration and adversely affect foreign nationals navigating lengthy employment-based green card backlogs.
However, federal officials dismissed those concerns, maintaining that the requirement affects a specific subset of companies and represents a modest expense relative to overall salaries, relocation allowances and recruitment costs.
DHS also noted that H-1B demand has consistently exceeded the annual statutory cap for more than a decade, projecting that the change will not reduce the overall number of foreign skilled workers hired.
Government estimates indicate that the expanded collections will generate an additional $37.9 million in fiscal year 2026 and $40 million in fiscal year 2027.
The policy represents a significant expansion of the fee’s application. Data shows that between fiscal years 2018 and 2025, approximately 27 percent of H-1B filings by covered companies incurred the biometric levy. Under the new interpretation, about 75 percent of their H-1B petitions would have been subject to the charge.
DHS acknowledged that its previous interpretation of the law was incorrect. Although Congress included extension applications when establishing the levy in 2015, DHS had previously linked enforcement to circumstances in which the fraud-prevention fee also applied.
Defending its revised interpretation, the department said, “The best interpretation of that statute is that the 9-11 Biometric Fee applies to all extension of status petitions even when the Fraud Fee is not applicable.”
Revenue from the fee funds the biometric entry-exit program used to verify foreign nationals entering and leaving the United States. Half of the collected funds, up to a designated cap, supports the dedicated biometric account, while the remainder goes to the U.S. Treasury’s general fund.
DHS said annual fee collections fell from $158 million in fiscal year 2016 to $25.6 million in fiscal year 2025, arguing that broader enforcement is necessary to sustain facial-comparison and related identification systems at U.S. land borders, seaports and international airports.
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