The White House has quietly extended the controversial US$100,000 supplemental fee that select employers must pay when filing new H-1B cap-subject petitions. The fee—first imposed by presidential proclamation on 19 September 2025—was due to lapse next week but has now been renewed through 21 September 2027 while the Trump administration pursues an appeal against the Court of Federal Claims ruling that found the surcharge unlawful. Under the proclamation, the payment is triggered when an employer has 50 or more U.S. workers and more than half of its workforce holds H-1B or L-1 status. Because Indian nationals account for roughly 71 percent of all approved H-1B petitions, Indian-headquartered IT services firms and U.S. multinationals with large India-born talent pools are disproportionately affected. Employers that fail to submit the payment risk automatic rejection of the petition. The extension comes at a sensitive moment. USCIS is simultaneously pursuing a regulatory proposal that would add a separate US$6,000 filing fee for all cap-subject H-1B petitions and eliminate the current 60-day grace period after job loss. If both measures survive legal challenges, sponsoring a single new H-1B worker could cost upwards of US$200,000 in government fees alone, not including attorney charges or relocation costs. Talent mobility leaders warn that the cumulative burden could push high-skill positions offshore or accelerate near-shoring to Canada and Mexico. Indian IT lobby group NASSCOM called the move “punitive and protectionist,” noting that the U.S. Department of Labor’s own data show no systematic under-payment of H-1B workers relative to U.S. peers in similar roles. U.S. tech majors with large Indian workforces—including Microsoft, Google and Amazon—have yet to comment publicly, but insiders say they are modelling alternative pathways such as Canada’s new open work-permit for H-1B holders and Mexico’s streamlined temporary resident visa. Practically, employers with approved FY 2027 H-1B registrations must budget for the surcharge when the filing window opens on 1 April 2027. Global mobility managers should also alert business units that extensions and transfers remain exempt—for now. However, insiders expect fresh litigation to challenge the legality of collecting the fee while the underlying proclamation is stayed. Companies with large India-origin talent pipelines should work with counsel to map cost exposure under multiple scenarios and communicate the potential impact to finance and workforce-planning teams.
Source: The Indian Express
