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On April 1, 2024, U.S. Citizenship and Immigration Services (USCIS) implemented a massive overhaul of its fee structure for immigration filings. The first adjustment since 2016, the new pricing dramatically raised the costs employers pay for the most common petition types, including H-1B and L-1. Fees rose by more than 165% across the board — with the H-1B registration fee surging by more than 2,000%, as the chart below illustrates.
Federal officials reported that the old fee structure couldn’t keep up with demand, which included more than 8 million applications per year spread across 200 global offices. New revenue from the fee increases would address the agency’s $1.8 billion budget shortfall and facilitate the hiring of 7,778 new staff members, helping USCIS chip away at its backlog of applications.
Unlike most federal agencies, USCIS obtains 96% of its funding through fees. “They get very little money from Congress,” said Lynden Melmed, a partner at BAL and head of its Government Strategies team. “The only way that the agency can support both their current and anticipated workload is by raising fees. So, it did not come as a surprise that there would be an increase.”
Roll back the calendar to November 15, 2022 — 16 months before the fee increase took effect. That’s when the USCIS fee proposal cleared the White House review. It’s also when BAL’s Government Strategies team began proactively informing clients that the fee increase was around the corner. On January 2, 2023, when the government released the text of the much-anticipated proposal, the team got to work, reviewing hundreds of pages of documents and quickly outlining a strategy to help organizations understand the implications the new fee structure would have on their immigration programs and business.
As part of the oneBAL model, the Government Strategies team was available to every attorney across the firm to ensure all BAL clients had access to strategic insights to help them prepare for the coming changes, whether they managed 10 or 10,000 applications per year.
“We knew that the price hike would have a significant impact for some companies,” said Kelli Duehning, a partner at BAL. “It was our job to educate our attorneys and their clients about the change, help them understand the financial implications and arm them with the information they needed to adjust their immigration programs and hiring strategies. It also was important to relieve any angst brought on by the new proposal — from the C-suite to the in-house immigration specialists to foreign national employees.”
Following the announcement by USCIS of the proposed fee structure, BAL’s Government Strategies team quickly initiated several education and advocacy efforts, starting in 2022 and continuing through 2023 and beyond. Collaborating with business coalitions and trade groups, BAL supported companies in developing their advocacy strategies and formulating responses to the proposed regulations during the public comment period. USCIS received nearly 8,000 comments on the proposal, and BAL continued to keep clients informed by providing continuous updates and expert analysis.
BAL also developed an in-depth communications outreach strategy to help employers navigate the complexities of USCIS’s new proposal. The latest information, best practices and guidelines were shared across a number of BAL’s channels, including newsletters, podcasts, webinars and to members of BAL Community — an interactive forum developed exclusively for in-house immigration and mobility professionals.
Our goal was to be a trusted guide on an extremely complex and constantly evolving topic during one of the busiest times of the immigration year,” said Eileen Lohmann, a member of the Government Strategies team. “We worked closely with in-house specialists to navigate the changing landscape and provide talking points that could be shared with leadership.” — Eileen Lohmann, a member of BAL’s Government Strategies team
To help employers measure the financial impact these fee increases would have on their immigration programs, BAL developed the USCIS fee calculator. With this free online tool, companies can easily determine the precise dollar amounts associated with the new fee structure for various visa applications — allowing them to make informed decisions about their resource allocation and immigration strategies.
“Many of our clients were struggling to grasp the budgetary effects of these fee hikes on their immigration programs,” said Steve Plastrik, a member of BAL’s Government Strategies team and one of the creators of the fee calculator. “With our calculator, companies can quickly input their data to determine the new costs, share these figures with leadership, and adjust their budget forecasts in real time.”
Since its launch in 2023, BAL’s online USCIS fee calculator has been utilized by 19,841 users
To further support HR professionals, BAL developed and led a webcast with the Society for Human Resource Management (SHRM) to explain the new USCIS fee increases. This webcast was part of BAL’s continuous effort to educate and assist businesses in understanding and adapting to the new fee structure.
During the webcast, which was viewed by 1,200 members, BAL’s Government Strategies team detailed the specifics of the fee increases, provided insights into the rationale behind the changes, and offered practical advice on how companies could adjust their immigration programs and budgets accordingly. The session was interactive, allowing SHRM members to ask questions and receive immediate, expert responses.
“We are grateful for BAL’s expertise, which has been instrumental in SHRM’s workplace immigration priorities,” said Emily M. Dickens, SHRM’s Chief of Staff and Head of Government Affairs. “Their practical strategies and comprehensive explanation of the new USCIS fee structure are precisely what our members require to prepare for current and future changes to the U.S. immigration system. Together, SHRM and BAL understand that modernizing U.S. immigration is not just common-sense policy, but a business imperative to ensure the U.S. remains competitive.”
Did you know that SHRM provides its members with training and support for J-1 visas? Visit their site to learn more.
After the new USCIS fee structure took effect, BAL continued to offer guidance and support to clients, using the shift to help them reimagine their hiring strategies. “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,” said John Hamill, BAL partner and head of the New York office, in his informative article. USCIS indicated it would use the additional revenue to improve processing times, reduce backlogs for employment-based filings and advance its expanded humanitarian mission.
After the final rule was issued, BAL asked companies about the business impact of the USCIS fee increases. Here are the results:
reported a significant impact on their global competitiveness.
reported little effect on their business.
BAL’s ability to address the USCIS fee increases exemplifies the firm’s ability to strategically and proactively advise its clients — by anticipating their needs and guiding them through the constantly evolving immigration landscape. “BAL’s mission has always been to support our clients through the twists and turns of immigration law,” said Melmed. “We strive to be a reliable and knowledgeable partner, helping businesses stay ahead of the curve and ensuring they have the resources needed to thrive in a dynamic business environment. That’s the BAL way.”
Our approach delivers the best of BAL to clients ranging from multinational Fortune 500 companies moving thousands of employees each year to businesses with a single immigration case.