Washington: The Donald Trump administration is preparing a proposal that could significantly increase the cost of H-1B and L-1 visa extensions, a move expected to have the biggest impact on Indian professionals and major technology companies employing skilled foreign workers. The proposal would require certain employers to pay thousands of dollars in additional fees every time they renew eligible work visas rather than only during initial hiring or job transfers.
If implemented, the policy would increase the cost of retaining foreign employees, particularly in the technology sector, where Indian professionals account for a large share of H-1B visa holders.
What the proposal seeks to change
At present, the additional 9/11 Response and Biometric Entry-Exit Fee generally applies only to qualifying employers filing H-1B or L-1 petitions for an initial grant of status or when sponsoring a change of employer.
Under the proposed rule, the same fee would also be charged when those employers file extension petitions, meaning companies could incur the additional cost every time an employee’s visa is renewed.
Which employers would be affected
The proposal primarily targets large US employers with 50 or more employees, where more than half the workforce holds H-1B or L-1 status.
Such employers currently pay an additional USD 4,000 for qualifying H-1B petitions and USD 4,500 for qualifying L-1 petitions. Extending this requirement to renewal applications would substantially raise long-term immigration costs for these companies.
Indian professionals likely to feel the biggest impact
Indian nationals are the largest beneficiaries of the H-1B visa programme, particularly in the US technology industry.
Since many Indian professionals remain on H-1B visas for several years while awaiting permanent residency, repeated extension costs could indirectly affect hiring decisions, workforce planning and employer willingness to retain foreign workers.
Tech companies face higher immigration costs
Major technology firms are among the largest users of H-1B renewals.
If the proposal becomes law, employers relying heavily on skilled foreign talent may have to budget significantly more for immigration compliance and visa renewals, increasing operating costs across the sector.
Proposal not yet final
The fee expansion has not yet taken effect.
It is part of the US Department of Homeland Security’s regulatory agenda and would require completion of the federal rule-making process before implementation. Details may change before a final regulation is issued.
Part of broader immigration reforms
The proposal comes amid broader efforts by the Trump administration to tighten employment-based immigration rules.
Recent measures have included higher visa-related charges and proposed reforms to skilled-worker programmes aimed at reshaping the US immigration system and encouraging employers to prioritise domestic hiring.
Conclusion
The Trump administration’s proposal to extend additional fees to H-1B visa renewals could significantly increase the cost of retaining skilled foreign workers. While the rule is yet to be finalised, Indian professionals and technology companies are expected to be among those most affected if the proposal is implemented.