Washington, D.C. (Rajeev Sharma): The US government is considering a regulatory change that could make extending H-1B and L-1 work visas significantly more expensive for employers, potentially affecting thousands of Indian professionals working in the country and the companies that sponsor them.
The proposal, outlined in the Department of Homeland Security’s regulatory agenda, seeks to extend the 9/11 Response and Biometric Entry-Exit Fee to visa extension applications. At present, the additional fee is generally applicable only when companies submit an initial H-1B or L-1 petition or when an employee changes employers.
If the rule comes into force, qualifying employers would have to pay the surcharge each time they file for a visa renewal. The measure is expected to increase hiring and retention costs for businesses that employ large numbers of foreign workers.
Move Comes After Legal Blow
The latest proposal follows a judicial setback for the Trump administration after a federal appeals court refused to pause a ruling that struck down its earlier proposal to impose a $100,000 fee on new H-1B visa applications. The administration is now pursuing a different route to increase immigration-related charges through regulatory changes.
Indian Professionals Likely to Feel the Impact
The proposed rule is expected to have the greatest impact on Indian nationals, who receive the overwhelming majority of H-1B visa extensions each year.
According to figures released by the US Citizenship and Immigration Services (USCIS), more than 406,000 H-1B petitions were approved during fiscal year 2025. Nearly 292,000 of these were for employees continuing their jobs in the US, with Indian nationals accounting for more than 226,000 approvals, making them the largest beneficiary of the extension process.
Since H-1B visas are typically granted for an initial three-year period before requiring renewal, the proposed fee expansion could increase the long-term cost of employing skilled foreign workers.
Tech Giants and IT Firms Could See Higher Expenses
Several leading technology companies and global IT service providers that rely heavily on H-1B talent may face higher immigration costs if the proposal is implemented. Firms such as Amazon, Microsoft, Google, Apple, Meta, and Indian IT major Tata Consultancy Services (TCS) are among the largest employers of H-1B visa holders in the United States.
The proposal would also affect companies using L-1 visas, which allow multinational corporations to transfer executives, managers and specialised employees to their US operations.
The regulation is yet to be finalised, and the administration has not announced an implementation date. However, immigration experts say the move could have significant implications for employers dependent on global talent as well as professionals seeking to continue their careers in the United States.
