H-1B visa rule changes: US expands $4,000 fee as Indian workers raise Green Card backlog concerns

The US Department of Homeland Security (DHS) has expanded the application of the 9/11 Response and Biometric Entry-Exit Fee to H-1B and L-1 visa extension petitions filed by certain employers, including extensions where the worker continues with the same employer. The final rule will take effect on September 9, 2026.

Under the rule, covered employers will have to pay a $4,000 fee for H-1B petitions and $4,500 for L-1 petitions when seeking an extension of status. Until now, the fee generally applied to petitions for initial employment or a change of employer. The change brings same-employer extension petitions within the fee requirement.

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The rule does not apply to every company sponsoring H-1B or L-1 workers. It covers employers with at least 50 employees in the US where more than 50% of their US workforce, in aggregate, is in H-1B, L-1A or L-1B status.

This distinction is important for Indian IT companies and other employers that make extensive use of H-1B and L-1 workers. The fee is paid by the employer, not the visa holder. DHS said existing statutes and regulations require the employer to make the payment.

DHS said the change corrects its earlier interpretation of the law. The department now says Congress intended the biometric fee to apply to all extension-of-status petitions filed by covered employers, whether or not the separate fraud prevention and detection fee applies.

The department said its earlier interpretation meant some covered employers could avoid the biometric fee when an H-1B or L-1 employee continued working for the same company. DHS said that outcome was inconsistent with congressional intent.

The new requirement will apply prospectively. DHS said the fees will not be imposed retroactively on past or pending petitions and will apply to relevant petitions from the rule's implementation date.

There is also an exemption for amended petitions that do not seek an extension of the worker's currently authorised H-1B or L-1 status. The fee provisions covered by the rule currently apply to petitions filed on or before September 30, 2027.

Indian visa holders raised concerns

The final rule records concerns from commenters that the change could have a greater effect on workers from India because some remain in employment-based Green Card queues for long periods and consequently require repeated H-1B extensions.

Some commenters said the rule “places an undue financial burden on a specific demographic, which is unfair and counterproductive.” Others argued that Indian and Chinese workers facing long waits for permanent residence could require repeated renewals and that higher employer costs could affect decisions to extend their status.

DHS rejected the argument that the rule targets people from particular countries. It said Congress determined which petitioners must pay the biometric fees and that Green Card applications and related backlogs fall outside the scope of this rule.

DHS expects nearly $78 million in additional payments

DHS estimates the change will generate an additional $37.9 million from H-1B and L-1 petitioners in fiscal 2026 and about $40 million in fiscal 2027. Its projections put the combined undiscounted additional payments at about $77.95 million over the two years.

For H-1B petitions alone, DHS projects 7,667 additional submissions will become subject to the $4,000 fee in fiscal 2026, generating about $30.67 million. The figure is projected to rise to 8,147 submissions and about $32.59 million in fiscal 2027.

DHS said the additional collections will support the biometric entry-exit system used by US Customs and Border Protection. The department said the funding supports biometric operations at land, sea and air entry points and the Traveler Verification Service used for facial comparison.

The department does not expect the additional cost to substantially reduce demand for H-1B workers. It said H-1B petitions have exceeded the available visa cap for several years and described the additional fee as small compared with wages, relocation expenses and other costs associated with hiring these workers.