Some of the largest companies using the H-1B visa program in the United States may face increased immigration costs. This comes under a potential rule from the Department of Homeland Security (DHS). This rule aims to extend the existing $4,000 fee to more renewal petitions, not just initial filings.

The regulation does not introduce a new fee or raise the current one. It’s an implementation of a 2015 law. This law mandates certain employers pay the surcharge under specific conditions. If enacted, the rule will apply the fee on H-1B and L-1 visa extensions similarly.

Adam Klein, a former senior DHS official, highlighted the potential impact. High-volume sponsors for H-1B and L-1 visas could face huge costs. Employers filing 1,000 H-1B renewals might pay an additional $4 million in fees.

The final rule and an effective date remain unsettled. The U.S. Customs and Border Patrol stated they are reviewing public comments on this. They work with DHS on policy changes and ensure national security via a biometric entry-exit system.

Which Companies Could Be Most Affected?

Significantly impacted employers are those filing many H-1B extension petitions. Companies like Amazon, Tata Consultancy Services, Infosys, Apple, and Microsoft receive thousands of H-1B approvals yearly. Still, the rule targets only certain employers and specific petitions. Thus, not the entire volume incurs these costs.

The H-1B program permits U.S. firms to hire international professionals for specialized roles requiring a bachelor’s degree or higher. The L-1 visa allows multinational firms to transfer executives and specialized employees to the U.S.

These visas are prevalent in technology, engineering, healthcare, and finance sectors. Some argue the program can suppress wages or be subject to misuse. However, supporters say it aids in recruiting skilled workers for hard-to-fill positions in the U.S.

Trump Administration H-1B Visa Changes

The Trump administration sought changes in the H-1B program. They aimed to raise employer costs and change visa allocation methods. One proposal included a $100,000 fee for new H-1B petitions from abroad, blocked by a federal court.

They also suggested replacing the H-1B lottery with wage-based selections. This approach favors higher-paid applicants.

The rule impacts firms with over 50 U.S. employees, where most are in H-1B or L-1 status. IT consulting and outsourcing firms mostly fall under this category.

Klein comments on the financial effects influencing company workforce planning, affecting budgeting and sponsorship decisions.

He notes the proposal may affect retention more than hiring since renewals involve already hired and trained workers. Klein explains applying the fee at renewal changes a hiring cost into an ongoing cost.