The US government is considering a new rule that could significantly increase the cost of renewing H-1B and L-1 work visas, a move that is expected to affect thousands of Indian professionals and the companies that employ them. The proposal, officially issued as a Notice of Proposed Rulemaking (NPRM), was first released in June 2024 by the Department of Homeland Security (DHS) and the Customs and Border Protection (CBP) Agency, and has now gained renewed attention under the Trump administration. What is the proposed rule? Currently, the additional "9/11 Response and Biometric Entry-Exit Fee" applies mainly to new H-1B and L-1 visa petitions or when a worker changes employers. Under the proposed rule, this extra fee would also apply every time an employer files for an extension or renewal of an existing H-1B or L-1 visa. The rule primarily targets companies with: 50 or more employees in the US, and More than 50% of their workforce on H-1B or L-1 visas. Such employers currently pay an additional ,000 for certain H-1B petitions and ,500 for L-1 petitions. If the proposal is finalized, those charges could also be levied during visa renewals. How could it affect Indian professionals? Indian nationals are the largest beneficiaries of the H-1B visa program, especially in the technology, engineering, healthcare, and consulting sectors. Since many Indian professionals remain on H-1B visas for several years before obtaining permanent residency, they typically require multiple visa extensions. The proposed rule may: Increase immigration costs for employers sponsoring Indian workers. Make companies more selective about renewing H-1B or L-1 visas. Raise hiring costs for IT firms and outsourcing companies that rely heavily on foreign talent. Potentially influence workforce planning, offshore hiring, or relocation strategies. Will employees have to pay? The additional fee is generally paid by the sponsoring employer, not the employee. However, immigration experts note that higher employer costs could indirectly affect hiring decisions, salary negotiations, or willingness to sponsor long-term visa holders. Is the rule in effect? No. The proposal has not yet become law. It remains in the rulemaking process and must be finalized before taking effect. Until then, existing visa renewal procedures and fee structures remain unchanged. What it means If approved, the proposal would increase immigration expenses for companies that depend heavily on H-1B and L-1 workers, particularly major IT services firms. While the fee would technically be paid by employers, Indian professionals could face indirect consequences if companies reduce sponsorships or become more cautious about extending work visas.
