E-Paper
H-1B visa renewals could cost more as Trump administration plans new fee; Indians likely to be impacted
The Trump administration plans to extend an existing surcharge on H-1B and L-1 visa extensions, potentially raising costs for US employers.
The Trump administration is moving ahead with a proposal to extend an existing surcharge on certain H-1B and L-1 visa petitions to extension applications, a step that could increase costs for large US employers that depend heavily on foreign skilled workers, including thousands of Indian professionals.
The proposal, included in the Department of Homeland Security's latest regulatory agenda, would expand the scope of the 9/11 Response and Biometric Entry-Exit Fee to cover extension-of-stay petitions for qualifying H-1B and L-1 workers. The additional fee currently applies only to certain initial H-1B petitions and change-of-employer filings, as well as qualifying L-1 petitions.
Higher costs for repeat H-1B and L-1 filings
If finalized, the rule would require eligible employers to pay an additional $4,000 for qualifying H-1B extension petitions and $4,500 for qualifying L-1 extensions. The surcharge applies to employers with 50 or more employees in the United States, where more than half of the workforce holds H-1B or L-1 status.
Because H-1B status is typically granted for up to three years and often renewed for another three years, companies that routinely retain foreign talent could face substantially higher immigration costs if the proposal takes effect.
The proposal originates from a DHS rulemaking first published in 2024 and has now reappeared in the administration's Unified Agenda, signaling the government's intent to move it towards a final rule. It has not yet been implemented, and no effective date has been announced.
Indians likely to be among the hardest hit
Indians are expected to be among those most affected if the proposal is implemented, as they account for the largest share of H-1B beneficiaries in the United States. According to US Citizenship and Immigration Services (USCIS), 399,402 H-1B petitions, covering both initial and continuing employment, were approved in fiscal year 2024. The agency's data shows that 71% of approved beneficiaries were born in India, far ahead of any other country.
The proposed surcharge would be paid by employers rather than workers. However, immigration experts say higher sponsorship costs could affect hiring, retention and visa renewal decisions, particularly at large technology, consulting and outsourcing firms that employ significant numbers of Indian professionals.
A separate analysis by the National Foundation for American Policy (NFAP) found that H-1B approval rates remained high in FY2024 despite stricter scrutiny in recent years, underscoring the continued reliance of US employers on the skilled foreign worker program. Since Indian nationals make up the majority of H-1B beneficiaries, any increase in employer costs is expected to have a disproportionate impact on India's skilled workforce in the US.
Proposal awaits final approval
The proposal is currently part of the federal government's regulatory agenda and must complete the rulemaking process before taking effect. Until a final rule is published, existing fee requirements remain unchanged.
If approved, the measure would represent another tightening of employment-based immigration policies by increasing the financial burden on companies seeking to retain skilled foreign workers, many of whom are Indian professionals employed across the US technology, healthcare, engineering and consulting sectors.
