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DHS Proposes Higher Costs for H-1B and L-1 Visa Extensions: What Indian Professionals and Employers Should Know

The U.S. Department of Homeland Security (DHS) has proposed an important change to the 9-11 Response & Biometric Entry-Exit Fee for H-1B and L-1 visas. If implemented, certain employers would have to pay this fee not only when filing a new H-1B or L-1 petition or changing employers, but also when applying to extend a worker’s visa. That change would significantly increase immigration costs for many large U.S. employers, especially those that depend heavily on foreign skilled workers.

Understanding the 9-11 Response & Biometric Entry-Exit Fee

The 9-11 Response & Biometric Entry-Exit Fee is a statutory surcharge imposed on certain H-1B (specialty occupation work visa) and L-1 (intracompany transfer visa) petitions filed by “covered employers.” These are employers with 50 or more employees in the United States, where more than half of the workforce is in H-1B, L-1A, or L-1B status. 

Under the current fee schedule, the surcharge is $4,000 for H-1B petitions and $4,500 for L-1 petitions. The fee is tied to the federal biometric entry-exit system and is scheduled in the regulations through September 30, 2027.

How the rule developed

The 9-11 Response & Biometric Entry-Exit Fee is not a new fee. It was first introduced by Congress in 2010 and later revised in 2015. The fee was created to help fund the U.S. government’s biometric entry-exit system and other border security initiatives.

Under the current rules, covered employers generally pay this fee only when they file an initial H-1B or L-1 petition or when an employee changes employers. Employers are not required to pay the surcharge when filing a routine extension of an employee’s H-1B or L-1 status.

What the proposed change would do

DHS now proposes to expand the scope of the fee. If the rule is finalised, covered employers would also have to pay the surcharge each time they file an H-1B or L-1 extension petition.

The fee amount would remain the same – $4,000 for H-1B petitions and $4,500 for L-1 petitions. However, instead of being paid only when filing the initial petition at the beginning of employment or when an employee changes employers, it would become payable again at every qualifying extension. This means employers with large H-1B and L-1 workforces could face significantly higher immigration costs over time. The final rule is currently undergoing final review with the Office of Management and Budget (OMB) and is expected to be published and enacted in the coming weeks.

What it means for Indian professionals and India-linked companies

While the proposal would affect all covered employers, its practical impact is expected to be particularly significant for IT & Consulting Firms that hire a large proportion of Indian professionals . FY2025 reporting based on USCIS data shows that Indian nationals accounted for 77.6% of continuing-employment H-1B approvals, which means a large share of H-1B renewals are already linked to Indian workers. Separate reporting based on USCIS data has also estimated that more than 1 million Indians are waiting in the employment-based green-card backlog, and they would hence require constant extension petitions to be filed to maintain their underlying immigration status. Taken together, these figures show why any increase in renewal-related filing costs would have a direct impact on Indian H-1B and L-1 employees, as well as on the employers that sponsor them. For many Indian professionals, the issue is not only the immediate cost of an extension, but also the effect it may have on their employer’s long-term immigration planning, mobility, and – permanent-residence strategy.

Key points to note: 

  • The proposal does not affect the validity of existing H-1B or L-1 approvals. Current visa holders may continue to work under the terms of their approved status.
  • The proposal does not impact all employers- Companies with less than 50 employees or Companies with more than 50 employees, but with less than 50% of their workforce in H-1B or L-1 status, would not be impacted.
  • At present, this is only a proposed regulatory change. It will not apply unless DHS publishes a final rule and specifies an effective date. The final rule is, however, expected to be published and enacted in the coming weeks,
  • The additional 9-11 Response & Biometric Entry-Exit Fee would remain the employer’s legal responsibility. H-1B and L-1 employees are not required to pay this surcharge.
  • If the proposal is implemented, covered employers would incur additional costs when filing extension petitions, as the fee would apply at each qualifying renewal rather than only at the initial filing or change of employer.
  • Higher filing costs may influence how employers budget for immigration matters, prioritise visa renewals, or plan future recruitment and workforce deployment.
  • Employees with upcoming H-1B or L-1 extensions should aim to file their extensions as soon as possible, before the final rule takes effect. Businesses should evaluate the financial implications of the proposed rule early and seek legal advice to understand their compliance obligations and available immigration planning strategies if the rule is finalised.

L-1 visa holders with dependants should also be aware that higher extension costs may affect long-term immigration and family planning. Read our article on the L-2 Visa for Dependants of L-1 Holders to understand how an L-1 extension may impact L-2 status. 

The proposal is currently under the DHS rulemaking process and has not yet taken effect. Employers should continue following the existing filing requirements until a final rule is published and an effective date is announced.

Early planning and informed legal advice can help businesses and professionals minimise disruption and remain prepared for evolving U.S. immigration requirements.

Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Receipt of this communication does not establish an attorney-client relationship. Please consult with a qualified immigration attorney regarding your specific circumstances.

Author Profile

Poorvi Chothani, Esq.
Founder & Managing Partner
LawQuest, India. LawQuest Global PLLC, Florida

Poorvi Chothani is the Founder and Managing Partner of LawQuest, a global immigration law firm, with offices in Mumbai, Florida, and New York. She is licensed to practice law in India, the UK, and the U.S. (New York).

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