US Proposes Mandatory Fee Extension for H-1B and L-1 Renewals

The United States Department of Homeland Security (DHS) is preparing to finalize a new regulatory rule that would significantly increase the cost of extending H-1B and L-1 work visas for foreign professionals. Under the proposed plan, a specialized fee that currently applies only to new visa petitions or employer changes would be expanded to include all routine extension applications.

Currently, US companies with more than 50 employees where over half the workforce holds H-1B or L-1 visas are required to pay an additional fee under the Public Law 114-113 framework-$4,000 for H-1B petitions and $4,500 for L-1 petitions. However, this fee is presently charged only during initial hires or when an employee changes employers. The new rule, outlined in recent regulatory updates, would apply this several-thousand-dollar fee every time an existing employee files for a visa extension to remain in the US.

The policy change is expected to heavily impact major technology firms and IT service companies that rely on skilled foreign talent. Indian professionals stand to be the most affected group, as Indian nationals consistently account for over 70% of all H-1B extension approvals granted by the US Citizenship and Immigration Services (USCIS) each year. While business groups warn that the rule will increase operational costs for American companies, the administration maintains that the measure encourages employers to invest in domestic talent.