The Donald Trump administration is considering a major change to the H-1B visa process that could significantly increase costs for employers hiring foreign professionals. Under a proposed rule, companies may soon have to pay an additional government fee not only for new H-1B applications but also for visa extension requests.
If implemented, the move is expected to affect thousands of Indian professionals working in the United States, along with IT companies that rely heavily on skilled foreign talent.
US Plans to Extend Additional Fee to H-1B Renewals
According to the latest regulatory agenda released by the US Department of Homeland Security (DHS), the government is in the final stages of introducing a rule that would expand the 9/11 Response and Biometric Entry-Exit Fee.
Currently, this fee applies only to:
- New H-1B and L-1 visa petitions
- Change-of-employer petitions
Under the proposed amendment, employers would also have to pay the same fee every time they file an H-1B or L-1 visa extension for eligible employees.
Although the proposal is nearing completion, it has not yet come into force.
Which Employers Will Be Affected?
The proposed rule targets companies that:
- Employ 50 or more workers in the United States, and
- Have more than 50% of their workforce on H-1B or L-1 visas.
At present, these employers pay:
- $4,000 for qualifying H-1B petitions
- $4,500 for qualifying L-1 petitions
If the new regulation is approved, the same charges would apply every time an employee’s visa is renewed, substantially increasing long-term hiring costs.
Indian Professionals Likely to Face the Biggest Impact
The policy change is expected to have the greatest impact on Indian professionals because they account for the majority of H-1B visa extensions in the US.
According to US Citizenship and Immigration Services (USCIS) data for the fiscal year ending September 30, 2025:
- Around 4.06 lakh H-1B petitions were approved.
- Nearly 2.91 lakh approvals (71%) were for continuing employment rather than first-time applicants.
Among these extension approvals:
- Approximately 2.26 lakh Indian nationals received H-1B renewals.
- Indians represented nearly 77.6% of all H-1B extension approvals.
- China ranked second with 31,581 approvals, followed by the Philippines, Canada, South Korea and Mexico.
These figures indicate that Indian professionals and their employers would bear the largest financial burden if the proposal becomes law.
Technology Companies Could See Higher Costs
The additional fee is expected to affect major technology firms and IT service providers that regularly sponsor skilled foreign workers.
A report by the National Foundation for American Policy (NFAP), cited by The Times of India, highlights the companies with the highest number of H-1B approvals for continuing employment during fiscal 2025:
- Amazon – 14,532 approvals
- Tata Consultancy Services (TCS) – 5,293
- Microsoft – 4,863
- Meta Platforms – 4,740
- Apple – 4,610
- Google – 4,509
The report notes that these numbers do not necessarily represent unique employees, as a worker may receive multiple approvals due to transfers or changes in job location. Nevertheless, the data illustrates the significant financial impact the proposed fee could have on large employers.
Proposal Still Awaiting Final Approval
The proposal was first outlined earlier this year in the regulatory agendas released by the Departments of Homeland Security (DHS), Labor (DOL), and State (DOS), reflecting the administration’s broader immigration policy priorities.
While the rule is currently in its final rulemaking stage, the US government has not yet announced when it will take effect.
If approved, employers sponsoring H-1B and L-1 workers may soon face substantially higher costs for retaining skilled foreign employees, adding another layer of expense to the US employment visa process.