US extends $4,000 H-1B, $4,500 L-1 fee to visa extensions: Details

Policy could weigh on Indian IT and consulting companies, which are among the major users of the work visa categories

The US is extending an existing H-1B and L-1 visa fee to certain extension petitions, potentially increasing immigration costs for large employers that rely on foreign workers. The change could have a significant impact on Indian IT services and consulting companies, which are among the major users of these work visa categories.

 

From September 9, employers meeting specific workforce conditions will have to pay the existing $4,000 fee for H-1B petitions and $4,500 for L-1 petitions when filing eligible extension-of-status requests.

 

The important point is that the fee amounts themselves have not been raised. Instead, the US government is widening the circumstances in which the fee must be paid. Earlier, the charge generally applied to initial H-1B and L-1 petitions and certain cases involving a change of employer. The new rule brings qualifying extension petitions into its scope, according to the US Department of Homeland Security (DHS).

   

PTI reported that the rule will apply to employers with at least 50 employees in the US, provided more than 50 per cent of their workforce is in H-1B or L-1 non-immigrant status.

 

What is changing?

The 9-11 Response and Biometric Entry-Exit Fee is being extended to eligible H-1B and L-1 extension petitions.

 

For covered employers, the additional payment will be:

 

• H-1B: $4,000 per eligible petition
• L-1: $4,500 per eligible petition

Previously, an employer could avoid this particular fee when filing an extension petition for an existing employee in circumstances covered by the earlier interpretation of the rules. From September 9, qualifying extensions will also attract the charge.

 

This means the change is best understood as an expansion of an existing fee rather than a hike in the fee rate.

 

How Indian IT companies could be affected

The change is relevant for Indian IT services and consulting companies with large US operations. Many of these businesses use H-1B visas to deploy specialised professionals in the US, while L-1 visas can be used to transfer eligible employees between related overseas and US offices.

 

For a company filing hundreds or thousands of eligible extension petitions, the financial impact can add up quickly.

 

For instance, 1,000 eligible H-1B extensions would mean $4 million in this fee alone. The same number of L-1 extensions would cost $4.5 million.

 

PTI reported that DHS estimates the expanded fee collection could generate around $157.3 million annually.

 

Who will have to pay?

 

The fee is an employer obligation, rather than a charge payable directly by the Indian worker.

 

However, it could still affect employees indirectly. Companies facing higher visa sponsorship costs may reassess workforce deployment, the timing of extensions or whether particular roles should be filled through US-based employees, overseas staff or foreign workers on US visas.

 

Not every H-1B or L-1 extension will attract the fee. The employer must first fall within the specified workforce threshold.

 

The DHS has also clarified that certain amended petitions that do not seek an extension of status are outside the expanded fee requirement, PTI reported.

 

Why is the US expanding the fee?

The charge is linked to the US government's biometric entry-exit programme. Congress created the 9-11 Response and Biometric Entry-Exit Fee in 2015 to support biometric entry and exit systems, with the proceeds directed towards programmes associated with border security and national security.

 

The latest rule changes how the existing statutory fee is applied to H-1B and L-1 petitions. The regulation is scheduled to take effect on September 9, 2026.

 

For Indian professionals, the immediate takeaway is that the visa fee has not simply jumped from one amount to another. Instead, a fee that already applied in specified H-1B and L-1 cases will now also cover eligible extensions filed by certain large employers. That could make repeated visa sponsorship more expensive for companies with sizeable Indian-origin and other foreign-worker populations in the US.