U.S. Immigration Alerts

FGI Alert: Department of Homeland Security to Increase H-1B Screening Fees for Certain Large Employers

U.S. Customs and Border Protection (CBP) has issued a final rule, scheduled for publication in the Federal Register on August 10, 2026, that expands when the “9-11 Response and Biometric Entry-Exit Fee” applies to H-1B and L-1 petitions. The 9-11 Biometric Fee, established by Congress in 2015, applies to petitioners with 50 or more U.S. employees where more than half of the workforce holds H-1B or L-1 status. Since the fee’s inception, the Department of Homeland Security (DHS) had applied it only where an accompanying anti-fraud fee also applied, (i.e., initial petitions and petitions involving a change of employer). DHS has now concluded that reading was incorrect and inconsistent with the statute’s intent to fund federal biometric entry-exit operations and has expanded financial obligations for these companies. These additional fees are intended to support enhanced screening, biometric entry-exit programs, and national security-related initiatives, but they will also increase the cost of sponsoring and maintaining foreign talent for companies that rely heavily on employment-based immigration. The full text of the final rule can be accessed at 2026-16231.pdf

Key Points

• Expanded Fee Requirements for Large H-1B Employers: Certain employers with a high percentage of H-1B and L-1 workers must pay additional government screening fees when filing qualifying petitions. The rule continues DHS’s efforts to place greater financial responsibility on employers that rely extensively on temporary foreign workers.
• Covered Employer Definition: A covered employer is generally defined as a company with more than 50 employees in the United States where more than 50% of employees hold H-1B or L-1 nonimmigrant status. Employers that do not meet this threshold are generally exempt from the additional screening fee requirement.
• Fee Amounts Remain Significant: Under the rule, qualifying employers must pay an additional $4,000 fee for H-1B petitions and an additional $4,500 fee for L-1 petitions when applicable. These fees are separate from other required filing fees, attorney costs, and optional expedited processing expenses.
• National Security and Biometric Screening Purpose: DHS stated that the fees are designed to fund biometric entry-exit systems and related screening programs intended to strengthen national security. The increased costs reflect a broader federal focus on enhanced oversight of employment-based immigration programs.

What Employers Need to Know

• Budgeting for Increased Immigration Costs: Employers that frequently sponsor H-1B workers should review their immigration budgets to account for additional government filing expenses. Companies with large foreign national populations may experience a meaningful increase in annual immigration-related costs.
• Workforce Composition May Trigger Additional Costs: Employers should monitor whether changes in workforce demographics cause them to meet the definition of a covered employer. A company that crosses the 50-employee and 50% H-1B/L-1 workforce threshold may become subject to additional fees in future filings.
• Immigration Planning Should Include Cost Analysis: Companies should consider these fees when evaluating hiring strategies, employee transfers, and long-term workforce planning. Employers relying heavily on H-1B or L-1 workers may need to factor increased compliance expenses into talent acquisition decisions.
• Compliance Reviews Remain Important: Higher government fees are part of a broader trend toward increased scrutiny of employment-based immigration programs. Employers should continue maintaining accurate immigration records, consistent job documentation, and strong compliance procedures.

Looking Ahead

• Potential Expansion of Immigration-Related Costs: The increased screening fees may represent a continued movement toward shifting more immigration program costs onto employers. Future administrations may consider additional fee increases or expanded payment obligations for companies using employment-based visa programs.
• Greater Scrutiny of High-Volume H-1B Users: Large employers that depend significantly on H-1B and L-1 workers are likely to remain a focus of government oversight. Additional regulations, enforcement initiatives, or reporting requirements could be introduced to increase monitoring of foreign worker programs.
• Impact on Workforce Strategy: Companies may reevaluate how they balance domestic hiring, foreign recruitment, and global mobility programs. Increased immigration expenses could influence decisions regarding outsourcing, international assignments, and the location of specialized roles.
• Continued Policy Debate Over Employment Immigration: These changes are part of a larger national discussion regarding the role of skilled foreign workers in the U.S. economy. Future policy developments may continue to emphasize higher fees, increased screening, and greater restrictions on employer-sponsored immigration.

The DHS fee increase adds another layer of cost and compliance responsibility for employers that rely heavily on H-1B and L-1 workers. While the stated purpose of the rule is to strengthen screening and national security programs, employers should prepare for the practical impact of higher immigration expenses and increased government oversight. As employment-based immigration policies continue to evolve, companies will need proactive planning to maintain access to critical foreign talent while remaining compliant with changing requirements.

The content of this article is intended only to provide a general guide to the subject matter. It should not be construed as legal advice. Please contact FGI at info@employmentimmigration.com or (+1) 248.643.4900 for guidance if you have specific questions.