US under fire for collecting $1 billion in immigration fees for stalled applications

The United States government is facing criticism over immigration policies that continue to collect fees from applicants while halting or refusing to process their cases, according to a report by David J. Bier of the Cato Institute. Testimony before the US Senate cited in the report highlights that more than $1 billion may have been collected for applications that are not being adjudicated, raising concerns about fairness and transparency in the immigration system.

The issue is linked to a series of policy decisions that have restricted entry, paused visa processing, and halted benefits for certain nationalities. Together, these measures have significantly reduced the number of applications being processed, even as fee collection continues.

Entry restrictions for multiple countries

A presidential order signed in December expanded visa restrictions to citizens of 40 countries, building on an earlier list of 19. These restrictions apply to both immigrant visas and most temporary visas.


Consular officers have reportedly been instructed not to inform applicants in advance that they fall under these restrictions. This means individuals may still attend interviews and complete formalities despite being unlikely to receive approval.

The affected countries include major sources of immigration such as Cuba, Venezuela, Nigeria, Iran, and Haiti.

Freeze on benefits within the United States

A second policy extends restrictions to individuals already living in the United States. It halts processing of applications such as:

• Work permits
• Permanent residency (green cards)
• Other immigration benefits

The policy also includes a review of approvals granted earlier. It applies even to long-term residents and does not have a defined end date.

Visa processing pause for 75 countries

A third measure freezes immigrant visa processing for 75 countries. Authorities have said the move is linked to concerns over welfare usage among immigrants from these countries.

“The freeze will remain active until the US can ensure that new immigrants will not extract wealth from the American people,” the State Department said.

The policy provides limited exceptions, such as adopted children of US citizens, but excludes spouses, parents, and biological children.

Combined impact of restrictions

Together, these policies effectively block citizens of 92 countries from receiving immigrant visas.

Category	Estimated impact
Countries affected	92
Share of global US immigrants affected	~50%
Applicants abroad blocked	320,000+
Total including US-based applicants	561,000+

Diversity visa programme also affected

A separate decision has halted approvals under the diversity visa lottery. While applicants can still apply and attend interviews, no visas are being issued.

“DV applicants may submit visa applications and attend interviews, and the Department will continue to schedule applicants for appointments, but no DVs will be issued,” the State Department said.

Most diversity visa applicants are already covered under the broader country-based restrictions.

Fees continue despite halted processing

Immigration applicants are required to pay fees at different stages of the process. These fees remain in place even as processing slows or stops.

Typical cost structure

For example, sponsoring a spouse can involve multiple payments:

Process	Fee (USD)
Petition filing	$675
Status adjustment	$1,440
Work permit	$560
Total	$2,675

Overall, US Citizenship and Immigration Services collects nearly $7 billion annually in fees, while consular services account for about $6 billion.

Estimated scale of fees collected

Based on available data, around 2 million applications that would likely have been approved are now affected.

Category	Estimate
Total affected applications	~2 million
Estimated fees collected	$1 billion+

Most affected nationalities

Country	Applications	Estimated fees
Cuba	~1 million	$543 million
Venezuela	239,000	$138 million
Others (Nigeria, Afghanistan, Haiti, Iran)	Significant	Not fully specified

Around 90% of the affected fees are linked to countries under the initial 40-country restriction, largely due to higher fees charged by US immigration services.

Data gaps and lack of transparency

The full scale of the issue is difficult to measure due to limited public data, the CATO report said. Recent statistics have not been fully released, and many datasets do not include detailed breakdowns by nationality or application type.

Estimates are based on earlier data and assumptions about approval rates, which may understate the actual impact.

Call for policy review

The testimony urged lawmakers to require authorities to resume processing applications and assess them based on eligibility rather than nationality.

It argued that while applications can be denied under existing laws, collecting fees without providing decisions or services raises serious concerns about accountability in the immigration system.