The Trump administration is considering expanding an additional fee on H-1B and L-1 visas to include renewal and extension applications, a move that could significantly increase costs for US employers and affect thousands of Indian professionals working in America.
Currently, the fee applies mainly to new H-1B and L-1 visa petitions and cases where workers change employers. Under the proposed rule, companies may also have to pay the additional charge when extending the stay of existing foreign employees.
Proposed Rule Could Raise Employer Costs
The proposed change is part of a Department of Homeland Security (DHS) regulation that seeks to broaden the scope of the 9-11 Response and Biometric Entry-Exit Fee.
Under the proposal, employers with at least 50 employees in the US, where more than half of the workforce holds H-1B or L-1 visas, would be required to pay the fee for visa extension petitions as well.
At present, eligible companies pay around $4,000 for new H-1B petitions and $4,500 for new L-1 petitions. If implemented, these charges could also apply when companies renew existing employees’ visas.
The regulation was included as a pending final rule in the Trump administration’s 2026 Unified Regulatory Agenda, with a final decision expected after review by the Office of Management and Budget.
Indian Professionals Likely to Be Hit Hard
The proposed fee expansion is expected to have the biggest impact on Indian professionals, who account for the majority of H-1B visa approvals and renewals in the US.
According to US Citizenship and Immigration Services (USCIS) data, around 406,348 H-1B petitions were approved in fiscal year 2025, including 291,542 petitions for continuing employment.
Indian nationals accounted for approximately 226,359 H-1B extension approvals, representing nearly 78 per cent of all continuing employment approvals.
Because of this dominance, technology companies and IT service firms with large Indian workforces could face significantly higher expenses when retaining skilled employees.
IT Giants Could Face Higher Visa Expenses
Large technology companies and outsourcing firms are expected to bear much of the financial burden if the rule takes effect.
Companies including Amazon, Tata Consultancy Services, Microsoft, Meta Platforms, Apple and Google have among the highest numbers of approved H-1B petitions for continuing employment.
Industry experts say the additional costs could affect companies that depend heavily on foreign skilled workers, particularly in software development, engineering, artificial intelligence and other technology sectors.
Government Says Fee Will Support Security System
The DHS has argued that expanding the fee would align with congressional intent and help fund the US biometric entry-exit system, which uses technologies such as facial recognition to monitor international travel.
The department estimates that the expanded fee could generate around $157.3 million annually.
Officials also said the measure would continue to apply only to large employers meeting the existing workforce criteria.
Proposal Revives Earlier Trump-Era Policy
The proposal follows a similar DHS rule introduced in 2020 during Trump’s first administration, which was later blocked by courts and never implemented.
The latest move comes amid broader efforts by the administration to tighten immigration regulations and increase costs associated with employment-based visas.
If finalised, the rule could create additional financial pressure for US companies relying on foreign talent and may particularly affect Indian technology workers, who make up the largest share of H-1B visa holders in the country.