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HomeWorldU.S. Widens $4,000 H-1B Extension Fee

U.S. Widens $4,000 H-1B Extension Fee

The U.S. Department of Homeland Security (DHS) is expanding an existing $4,000 fee on certain H-1B petitions and a $4,500 fee on L-1 petitions to include visa extensions filed by qualifying employers, even when an employee remains with the same company.

The final rule is scheduled to take effect on September 9, potentially increasing recurring immigration expenses for some U.S. companies that rely heavily on foreign skilled workers.

The change applies specifically to employers with at least 50 employees in the United States where more than half of the U.S. workforce collectively holds H-1B, L-1A or L-1B status.

Under the new interpretation, these employers will be required to pay the 9/11 Response and Biometric Entry-Exit Fee whenever they file a qualifying extension of status petition for an affected employee.

Previously, the fee generally applied when an employer sought initial employment authorization for a worker or filed a petition involving a change of employer. Extensions involving the same worker and employer were generally not subject to the additional charge in cases where the separate fraud-prevention fee did not apply.

DHS said the regulatory change corrects its previous interpretation of federal law and requires covered employers to pay the biometric fee for all qualifying extension-of-status petitions, regardless of whether a fraud-prevention and detection fee is also required.

The government is not increasing the amount of the fees themselves. Instead, the new rule expands the types of petitions to which the existing charges apply.

Covered employers will continue to pay $4,000 for each qualifying H-1B petition and $4,500 for each qualifying L-1 petition. Amended petitions that do not seek an extension of a worker’s authorized status will remain exempt.

DHS also clarified that employers, rather than visa holders, are responsible for paying the charges. The department rejected proposals that would have allowed employees to cover the fee when an employer was unwilling to do so.

The change could indirectly affect Indian technology workers and other foreign professionals if companies reconsider the financial cost of repeatedly extending employment visas.

Critics of the measure have argued that the additional expenses could discourage employers from retaining H-1B workers and create further difficulties for employees facing lengthy waits for employment-based permanent residency.

DHS rejected those concerns, arguing that the rule applies to a relatively limited category of employers and that the fees represent a small portion of the overall cost of employing foreign professionals.

The department also noted that demand for H-1B visas has exceeded annual availability for more than a decade and said it does not expect the expanded fee requirement to significantly reduce the overall number of H-1B workers hired.

DHS estimates the change will generate an additional $37.9 million for the U.S. government in fiscal 2026 and approximately $40 million in fiscal 2027.

The revised interpretation substantially increases the proportion of petitions subject to the fee. Between fiscal years 2018 and 2025, about 27 per cent of H-1B petitions submitted by covered employers were charged the biometric fee. DHS estimates that approximately 75 per cent would have been subject to the charge if the new interpretation had applied during that period.

DHS said Congress included extensions when establishing the fee in 2015, but the department had previously tied collection of the charge to circumstances in which the separate fraud-prevention fee was also applicable.

Revenue from the fee helps support the U.S. biometric entry-exit program, which uses technology to verify the identities of foreign nationals entering and leaving the country.

DHS said collections from the fee declined from approximately $158 million in fiscal 2016 to $25.6 million in fiscal 2025. The department said broader collection is necessary to support facial-comparison technology and other biometric systems operating at U.S. land, sea and air ports of entry.

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