The US Department of Homeland Security (DHS) has broadened the scope of its $4,000 H-1B petition fee and $4,500 L-1 petition levy to include visa extensions filed by certain employers — even when the worker remains with the same company. The final rule takes effect on 9 September and is expected to significantly raise recurring immigration costs for companies that rely heavily on foreign skilled professionals, including a large number of Indian technology firms.

What the Rule Changes

Until now, the 9/11 Response and Biometric Entry-Exit Fee applied primarily to petitions seeking initial employment or a change of employer. Extensions filed by the same employer for the same worker were generally exempt when the separate fraud-prevention fee did not apply. The new rule corrects what DHS describes as a misreading of the 2015 statute that first established the charge.

'The best interpretation of that statute is that the 9-11 Biometric Fee applies to all extension of status petitions even when the Fraud Fee is not applicable,' the department said in its final rule notice.

Who Is Affected

The expanded fee applies only to employers with at least 50 employees in the United States where more than 50 per cent of the US workforce collectively holds H-1B, L-1A, or L-1B status. Such employers will be required to pay the biometric fee each time they seek an extension of a covered employee's authorised status. Amended petitions that do not seek a status extension remain exempt. Critically, the fee is paid by the employer, not the visa holder. DHS rejected suggestions that employees be permitted to pay it when their companies were unwilling to do so, citing statutory language that places the obligation squarely on employers.

Scale of the Expansion

The financial and operational impact is substantial. Between fiscal 2018 and 2025, approximately 27 per cent of H-1B petitions submitted by covered employers attracted the biometric fee under the old interpretation. Under the new rule, an estimated 75 per cent of their H-1B petitions would be subject to the charge — nearly tripling the share of affected filings. DHS estimates the change will generate $37.9 million in additional government receipts in fiscal 2026 and $40 million in fiscal 2027.

DHS Rationale and Pushback

The department acknowledged that commenters had warned higher costs could discourage companies from retaining H-1B employees, reduce legal immigration, and disadvantage workers already caught in lengthy employment-based green-card queues — concerns that disproportionately affect Indian nationals. DHS rejected those arguments, saying the fee applies to a limited category of employers and is modest relative to wages, relocation expenses, and other costs associated with hiring foreign professionals. The department also noted that demand for H-1B visas has exceeded annual availability for more than a decade and it does not expect the rule to reduce the overall number of H-1B workers hired.

Where the Money Goes

Collections from the biometric fee support the entry-exit programme used to verify the identity of foreign nationals at US land, sea, and air ports of entry. Half of the receipts, up to a statutory cap, flow into a dedicated biometric account; the remainder enters the Treasury's general fund. DHS noted that fee collections had declined sharply — from $158 million in fiscal 2016 to just $25.6 million in fiscal 2025 — and argued that broader collection is necessary to sustain facial-comparison and other biometric systems. The rule takes effect 9 September, giving affected employers limited time to revise their immigration budgets ahead of the next filing cycle.