Hike in US immigration fees will reduce volume of visa applications from India

The new H-1B application visa fee has been increased from $460 to $780, and the H-1B registration fee will rise from $10 to $215

Fees for acquiring US citizenship as well as employing migrant workers – be the H-1B visa holders or those on a L visa (Intra company transfer) is set to get more expensive from 1 April, 2024. The worst hit are those opting for the investment-linked green card – aka the EB5 visa as the US Department of State has increased certain nonimmigrant visa (NIV) application processing fees.

The EB-5 programme, launched by the US government in 1990, enables high-net-worth foreign investors to obtain a US visa for themselves and their families by investing a minimum of USD 5,00,000 in a US business that helps create 10 jobs for American workers. Popularly known as investor visa, the fees has jumped from $3,675 (over Rs 3,00,000) to $11,160 (over Rs 9,00,000). So the investor would not only have to pay the minimum amount of $5,00,000 but also the additional fees of $11,160, bringing his sum total investment cost to $5,11,160.

"EB-5 investors will now pay $11,160 for their initial I-526 petitions -a hike of 204%, and $9,535 for their I-829 application to remove conditions on permanent resident status, which is a hike of 154%." But the processing times on these applications take a few years. Will they quicken with this massive hike?" asked US immigration attorney Cyrus Mehta.

The new H-1B application visa fee, form I-129, has been increased from USD 460 (over ₹38,000) to USD 780 (over ₹64,000). The H-1B registration will rise from USD 10 ( ₹829) to $ 215 (over ₹17,000), but from next year.This non-immigrant visa allows US companies to employ foreign workers in speciality occupations requiring theoretical or technical expertise. Many of these technology companies tend to hire Indians the most.

" For instance, an employee now applying for the H-1B visa, will have to pay the initial registration fee of $10 for H-1B registration. This registration fee has been proposed to be increased to $215, effective next year.  Furthermore, after the registration, the employee and the employer will have to pay fee for the visa. This fee has to be paid through Form I-129, and has been increased from $ 460 to $780. This brings the sum total cost of the entire application process to $790 (which would have earlier been only USD 470). Additionally, if this registration is done in the next year, the employer and employee will incur an additional cost of $205, bringing the total cost of the visa to $995," said Keshav Singhania, Head - Private Client Singhania & Co.

The recent increase in immigration fees, aimed at reducing errors and improving administrative efficiency, is concerning. The 69.5% hike in the H1-B visa fees, announced by USCIS, which had previously enabled the US tech-based companies to hire thousands of employees from India and China, will put an increased burden on both the company and the applicant to apply for this visa, said experts.

"This fee hike is part of a broader adjustment in fees for various categories of non-immigrant visas and is likely to affect the decision-making process for both individuals and organizations planning to apply for these visas. For India, which sends a significant number of H-1B visa holders to the U.S., particularly in the IT sector, the increased costs could influence the overall cost-benefit analysis of pursuing employment or projects in the U.S. It may also impact the strategies of Indian IT companies regarding their workforce deployment and project pricing in the U.S. market," said Anant Singh Ubeja, Senior Associate, SKV Law Offices.

For instance, for FY 2023, TechSolutions Inc planned to send 50 employees to the US on H-1B visas. "The company's initial cost for registration (assuming all applicants are registered) would be $500 ($10 * 50). If all 50 applications were approved, the application fee would amount to $23,000 ($460 * 50). However, after the Fee hike, if TechSolutions Inc. again plans to send 50 employees to the U.S., the new cost for registration would be $10,750 ($215 * 50). If all 50 applications were approved, the application fee would now be $39,000 ($780 * 50)," explained Ubeja.

 The fee for L-1 visas has been increased from $460 (over Rs 38,000) to $1,385 (over Rs 1,10,000). This visa is specifically for the intracompany transferees. It means it allows multinational companies to transfer a few employees from their offices to work in the US for some time.

"The substantial increase of over 200% in fees for L1 visas, facilitating temporary intracompany transfers, and EB-5 visas for investors, is anticipated to result in a reduction in the volume of visa applications. The hike in L1 visas will demotivate the MNCs from taking the initiative of intracompany transfers of foreign employees to US, whereas the hike in EB-5 visas is bound to discourage investors from applying for a visa to the US," noted Singhania.

USCIS plans to launch organizational accounts for collaboration on H-1B processes and introduce online filing options for certain forms, enhancing convenience and efficiency for users starting February 28, 2024.

Although the administration attributes this hike to achieving administrative efficiency and covering operational costs, it appears akin to an effort to restrict the influx of immigrants and visa applications in the United States, added Singhania.