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The cost of running an immigration program at a U.S. company just went up — a lot.
On Jan. 31, U.S. Citizenship and Immigration Services published a final regulation to raise immigration filing fees — and high-skilled categories saw some of the biggest increases. On April 1, the fee for an H-1B petition increased from $460 to $780 (70%), and the fee for an L-1 intracompany transfer petition increased from $460 to $1,385 (201%). All of that is before a new $600 Asylum Program Fee ($300 for small employers) is added on for each employment-based nonimmigrant or immigrant filing. Analysis from the BAL Government Strategies team shows that a typical small- or medium-sized company may see the amount they spend on filing fees more than double.
None of this is good news.
At the same time, the fee increases present an opportunity for companies to take stock of their immigration programs and reassess whether they are doing everything they can to take advantage of policy improvements that the Biden administration has made.
The fee increases are the first since 2016, and USCIS has said it will put the additional revenue to good use — not only by helping them meet the challenge of expanded humanitarian programs but also by improving processing times and reducing backlogs for employment-based filings. While the business community was clear that it would have liked to see USCIS implement additional efficiencies before raising fees, the administration has shown good faith by working to streamline programs with its current funding level. Consider:
Understandably, we have heard plenty at BAL from employers frustrated with how dramatically fees increased. What we have not heard, however, is that employers plan on dramatically cutting back their immigration programs. This is good news — and not only because it means companies will continue to recruit top workers to help keep them competitive.
Despite higher fees, there is ample evidence that it is a good idea to invest in foreign workers now, at a time of generally favorable policies. Take the H-1B program as one example. The H-1B registration fee has increased from $10 to $215 for next year’s cap registration, which gave employers an incentive to put eligible employees in the lottery this year if they were able to do so. On top of that, for beneficiaries that were not selected, employers have more favorable options for H-1B alternatives now than they previously did. The administration has added new qualifying fields of study to its STEM Designated Degree Program List, making more recent graduates eligible for extended Optional Practical Training. Officials also provided clarifying guidance on O-1 “extraordinary ability” visa criteria, making this category an increasingly common option.
None of the administration’s immigration programs are ensured to continue under future administrations. In the current political environment, there is no telling how long they will last.
Donald Trump has emerged as the Republican Party’s presumptive nominee for president. Whatever you think of Trump’s politics, it is plainly true that when he was in office, it was harder to recruit and retain high-skilled foreign workers. H-1B denial rates skyrocketed and processing backlogs ballooned at understaffed agencies. COVID-19 only made the problems worse.
Nobody knows what Trump may do if he wins this year’s election, but it certainly seems unlikely he would decrease immigration fees. Employers could be stuck with higher rates for reduced services.
The adage “never let a crisis go to waste” is instructive as employers face higher costs and uncertainty about the future of favorable immigration policies. While no one enjoys paying higher fees, employers should review their immigration strategies to take advantage of easier processes now before it’s too late.
John is a partner and head of BAL’s New York office focused on corporate clients with a range of immigration-specific issues and challenges. This article originally appeared in the most recent edition of Mobility Magazine.
H-1B registration has closed and petition filing begins next week.
The government opens an H-2B cap for returning workers.
And a look at how employers have been preparing for major USCIS filing fee increases.
Get this news and more in the new episode of BAL’s podcast, the BAL Immigration Report, available on Apple, Spotify and Google Podcasts or on the BAL news site.
This alert has been provided by the BAL U.S. Practice Group.
Copyright © 2024 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
On Jan. 30, the Department of Homeland Security published the long-anticipated and final U.S. Citizenship and Immigration Services fee rule. Under the final rule, immigration filing fees will see their most dramatic increases in years. The new fee schedule is set to take effect April 1, 2024.
We’re breaking down the new rule to help you understand how these fee increases could impact your business and its immigration program.
A chart summarizing the fee increases is available on page 5 of the final rule that was officially published in the Federal Register on Wednesday, Jan. 31.
The fee for an H-1B petition will increase from $460 to $780, an increase of 70%.
The H-1B registration fee will also increase from $10 to $215, though the higher rate will not be in effect for this year’s H-1B registration period, which runs from March 6-22. USCIS does, however, plan to charge the higher fee for H-1B petitions once cap filing begins April 1. According to the rule, any benefit request postmarked on or after the April 1 effective date must be accompanied with the higher fee.
The final rule also includes a $600 asylum program fee that will be charged for each Form I-129 and Form I-140 filing. This fee will come on top of increases to base filing fees. However, the fee will be reduced to $300 for small employers (25 or fewer employees) and nonprofit organizations are exempt from the fee.
Finally, the rule will also change premium processing timeframes from calendar days to business days, potentially extending the processing window.
We’ve crunched the numbers to illustrate the impact to hypothetical small- and mid-size programs.
ABC Company completed 54 filings in 2023 that will be impacted by the fee increases.
In 2023, the total filing fees the company paid was $23,445.
With the new fees applied, ABC Company’s total fees will increase by 134% to $54,920, an increase of $31,475.
XYZ Company completed 259 filings in 2023 that will be impacted by the fee increases.
In 2023, the total filing fees the company paid was $108,735.
With the new fees applied, XYZ Company’s total fees will increase by 120% to $239,705, an increase of $130,970.
So what will the increases mean for YOUR business?
Our USCIS fee calculator allows you to calculate the filing fees for your program.
BAL and BAL Community continue to review the final rule and will provide updated information and resources in the coming days and weeks. Subscribe to our newsletter and join BAL Community for access to upcoming focus groups, webinars and additional expert analysis on the USCIS fee increases.
The State Department publishes a proposal on allowing third parties at interviews for U.S. citizen services. Foreign musicians and artists express concern about proposed filing fee increases. And a look at how passport applications have swamped the State Department — and what that means for business.
This alert has been provided by the BAL U.S. Practice group.
Copyright ©2023 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
This alert has been provided by the BAL U.S. Practice Group.