H-1B visa extensions could soon come with a hefty new price tag under new Trump plan

The Trump administration is preparing to make it significantly more expensive for companies to retain H-1B and L-1 workers by extending an existing visa fee to extension petitions. If finalised, the move would mean employers pay thousands of dollars more every time they renew eligible H-1B and L-1 visas, rather than only when hiring a worker or sponsoring a job switch.

The proposal, outlined in the regulatory agendas published by the US Department of Homeland Security (DHS), Department of Labor (DOL) and Department of State (DOS) in early July, is expected to be finalised in the coming weeks.

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Currently, employers with more than 50 employees in the US, where over half the workforce holds H-1B or L-1 visas, must pay an additional $4,000 for eligible H-1B petitions and $4,500 for eligible L-1 petitions only when filing an initial petition or when an employee changes employers.

Under the proposed rule, the "9-11 Response and Biometric Entry-Exit Fee" would also apply to petitions seeking extensions of stay. Since H-1B workers typically require extensions after their initial three-year stay, employers that depend on foreign talent could see their visa costs rise substantially over time.

Indian workers likely to be the biggest group affected

The proposal is expected to have a disproportionate impact on Indian professionals, who account for the vast majority of H-1B extensions granted each year.

According to US Citizenship and Immigration Services (USCIS), 406,685 H-1B petitions were approved in fiscal 2025. Of these, 291,542 approvals, or 71%, were for continuing employment rather than first-time entrants into the programme.

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Indian nationals accounted for 226,359 of those extension approvals, representing 77.6% of all H-1B renewals during the year. China was a distant second with 31,581 approvals (10.8%), followed by the Philippines (2,506), Canada (2,186), South Korea (1,913) and Mexico (1,631).

The proposed fee expansion would therefore make it more expensive for employers to keep Indian professionals on their payroll beyond their initial H-1B term.

Big Tech among the biggest users of H-1B renewals

The higher costs could particularly affect large technology companies and IT services firms that rely on H-1B workers.

According to the National Foundation for American Policy (NFAP), Amazon received the highest number of approved H-1B petitions for continuing employment in fiscal 2025 at 14,532, followed by TCS (5,293), Microsoft (4,863), Meta Platforms (4,740), Apple (4,610) and Google (4,509).

NFAP noted that these figures do not represent individual employees, as an H-1B worker may receive multiple approvals for continuing employment during the same fiscal year, including after changing work locations.



with inputs from TOI