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By Billal Rahman
Immigration Reporter
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Some of the nation's largest users of the H-1B visa program could face millions of dollars in additional immigration costs under a pending Department of Homeland Security (DHS) rule that would expand the application of an existing $4,000 government fee to visa renewal petitions, experts said.
The proposal, which recently advanced to the final-rule stage of the federal government's regulatory agenda, would not create a new fee or increase the amount employers currently pay. Instead, DHS is seeking to update its regulations to implement a law Congress enacted in 2015 that expanded the circumstances under which certain employers must pay the surcharge.
If finalized as proposed, the rule would require covered employers to pay the existing fee on H-1B and L-1 extension petitions in addition to petitions already subject to the charge.
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"The impact could be significant for the employers subject to the fee, particularly high-volume H-1B and L-1 sponsors," Adam Klein, a former senior DHS official and co-founder of Globali.ai, told Newsweek. "For an employer filing 1,000 H-1B extensions, this increase could mean an additional $4 million in government fees."
DHS has not yet published a final rule or announced an effective date, and the final language could still change before it takes effect. In an email to Newsweek Thursday night, a U.S. Customs and Border Patrol spokesperson said, "CBP continues to evaluate public feedback on the proposed rule for the 9-11 Response & Biometric Entry-Exit Fee for H-1B and L-1 Visas. We are working closely with the Department of Homeland Security regarding any potential policy changes resulting from those comments. At this time, a publication date for the final rule has not been determined. We remain committed to fulfilling our congressional mandate to implement a biometric entry-exit data system, which is essential for national security and border integrity."
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Which Companies Could Be Most Affected?
The financial impact could be substantial for employers covered by the rule that file large numbers of H-1B extension petitions. U.S. Citizenship and Immigration Services data shows that companies such as Amazon, Tata Consultancy Services, Infosys, Apple and Microsoft each receive thousands of H-1B petition approvals annually. However, the proposed rule would apply only to certain employers that meet the threshold and only to covered extension petitions, meaning the actual costs would be lower than the companies' total H-1B filing volumes.
The H-1B visa program allows U.S. companies to hire foreign professionals for specialty occupations that generally require at least a bachelor's degree. The L-1 visa, meanwhile, allows multinational companies to transfer executives, managers and employees with specialized knowledge to the United States.
The H-1B visa is widely used in technology, engineering, health care and finance. Some conservatives and hard-line Make America Great Again loyalists argue that it can be used to undercut American workers by suppressing wages and, in some cases, has been vulnerable to fraud and abuse. Supporters, including business groups and immigration advocates, say the visa program helps employers recruit highly skilled workers for roles that can be difficult to fill domestically.
Trump Administration H-1B Visa Changes
The Trump administration has pursued a series of changes to the H-1B visa program, including efforts to increase costs for some employers and alter how visas are allocated. Among them was a proposal to impose a $100,000 fee on certain new H-1B petitions for workers outside the United States. However, the measure was blocked by a federal judge in a ruling later upheld by a federal appeals court. The administration has also pushed to replace the traditional H-1B lottery with a wage-based selection system that would give preference to higher-paid applicants.
The rule applies to employers with at least 50 U.S. employees where more than half the workforce holds H-1B or L-1 status, a group that largely includes major IT consulting firms, outsourcing companies and other high-volume visa sponsors.
Klein said the added costs could influence workforce planning decisions, including how companies budget for immigration expenses and which employees they choose to sponsor.
The proposal's biggest effect may be on retention rather than recruitment because extension petitions involve workers who have already been hired and trained, Klein added.
He said, "Applying the fee at renewal turns what was principally a hiring cost into a recurring cost of keeping that employee."
Contact Newsweek editors on this story: Matthew Robinson, Shakeema Edwards, Anna Commander.
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