US may hike visa fee in 2024, H1-B pre-registration fee to go up 2050%

Immigration fees for the United States is likely to increase in 2024. Earlier this year, the United States Citizenship and Immigration Services (USCIS) introduced a proposal on immigration services fees and modifications to certain other immigration benefits. The proposal recommends raising fees charged by US immigration authorities multi-fold. 

"USCIS had proposed a significant increase in immigration filing fees in January 2023 with the public comment period ending on March 13, 2023. Amidst criticism, the implementation of the said hike has been deferred, which is now expected to be finalized in early 2024," said Vipul Jai, Partner, PSL Advocates and Solicitors.

If implemented, the suggested fee increases would have a big impact on a lot of different immigration categories.

"Notably, there may be a startling 2050% increase in the H-1B e-registration fee, from $10 to $215. It is also planned to raise the petition fee for an H-1B visa application from $460 to $780, a 70% increase. Further, the immigration fee changes will also affect applications for the green card, which allows a person to live and work in the United States under permanent residency. The Green card applications are proposed to increase by 19% from $640 to $760," said Punyam Bhutani. Associate, SKV Law Offices.
 

 

Such a hike is going to have financial implications for Indian visa aspirants and employers sponsoring these visas. Higher fees can increase the overall cost of the visa application process, impacting both individuals and companies. This can also include costs associated with the initial petition, extensions, and other related processes.

"The proposed rule will impact employers that sponsor foreign workers and may affect the recruitment strategy in the coming days. Indian visa applicants already face high costs for other immigration-related services, such as medical examinations and visa application fees. The proposed H-1B fee hikes would add to the already burgeoning financial burden, making it even more challenging for some to pursue the visa," said Jai.

Here is everything you need to know about the proposed changes

For the most sought-after H1-B visa, the USCIS has proposed to raise the pre-registration fee from the current $10 to $215, a 2,050 per cent hike. The H-1B visa allows US employers to temporarily employ foreign workers in speciality occupations in fields such as technology, science, engineering, and mathematics. The H-1B pre-registration fee is charged at the time of registration, and it is typically paid by the employer or their authorised representative.

The $10 registration fee was introduced in 2019 and it is separate from the H-1B petition filing fee. USCIS requires the registration fee regardless of whether the potential petitioner’s registration is selected.

The new proposal also includes a 70 per cent increase in the petition fee for an H-1B visa application, up from current $460 to a  $780. Additionally, the application fees for citizenship may also increase by 19 per cent, from  the current $640 to $760.

According to US immigration authorities, the proposed hikes are aimed at addressing revenue challenges faced by USCIS, which have been exacerbated by the pandemic.

“USCIS conducted a comprehensive biennial fee review and determined that its costs have increased considerably since its previous fee adjustment due to expanded humanitarian programs, higher demand, increased processing times, and a need for more USCIS employees. USCIS cannot maintain adequate service levels with the effects of the budget cuts and its current level of spending without lasting impacts on operations,” said the proposal document. 

It further noted that in the spring of 2020, in the wake of the pandemic, USCIS revenue dropped by 40 per cent in April and an additional 25 per cent in May from the forecasted collections. 

According to USCIS, its current fee schedule, projected to average $3.28 billion per year in FY 2022 and 2023 (including premium processing), is expected to generate a total fee revenue of $4.5 billion per year on average. However, the proposed fee rule aims to generate an additional $1.9 billion per year on average compared to the current baseline. '

Manmeet Kaur, Partner at Karanjawala & Co., anticipates the implementation of a proposed immigration fee hike in the first quarter of the upcoming year, pending necessary approvals.

"Higher fees would result in increased financial burden for individuals applying for the H1-B visa. The overall cost of hiring Indian talent for the U.S. market would increase," said Kaur.

Here are some of the proposed fee hikes  
 

The largest increase is proposed for EB-5 investors in the investment-linked green card program, with a potential 204 per cent surge in the initial 526 petitions to $11,160 and a 148 per cent increase to $9,525 for the I-829 status. 

The petition fee for an L Visa (Intra-Company Transfer) has been proposed to increase from $460 to $1,385, marking a 201 per cent increase. Similarly, the petition fee for an O visa (non-immigrant worker) may rise from the current $460 to $1,055, reflecting a 129 per cent increase.

 

 

For an online-submitted Employment Authorization application, the fee is set to increase by 35 per cent, rising from the current $410 to $555, whereas the paper filing option will see a 59 per cent hike, up from $410 to $650.

The Application to adjust to Green Card Status (with Biometric Services) is proposed to increase by 26 per cent, going from the current fee of $1,225 to $1,540. Furthermore, the Application for Citizenship (Online or Paper Filing) is set to rise by 19 per cent, increasing from $640 to $760.

 

 

Notably, the request for Premium Processing Service has been kept unchanged at $2,500.

Premium Processing Service (PPS) is an option USCIS offers to fast-track certain applications and petitions. For a fee, USCIS guarantees a final decision within 15 days. This service is available for specific non-immigrant worker petitions, certain employment-based immigrant categories, and some student and exchange visitor status changes. 

What does it mean for Indian US visa applicants?

Of all the H-1B petitions approved in FY22, 72.6 per cent were for beneficiaries whose country of birth was India. According to USCIS data released in March 2023, over 3 lakh Indians received H-1B visas in FY22, followed by 55,038 applicants from China. 
 

"At present several students have opted for student loans in the absence of scholarships to pursue degrees in the US. These students usually apply for H1-B visas post-completion of studies. Subject to the percentage of final increase in visa fee, the students may also have to consider this additional expenditure while opting for a loan or other financial planning in addition to the regular fee in the course," said Kaur.