Department of Homeland Security Finalizes H-1B, L-1 Extension Fee Rule for Employers

On August 10, 2026, the Department of Homeland Security (DHS) is scheduled to publish a final rule that will require large H-1B and L-1 employers to pay a $4,000 to $4,500 fee on every extension petition, reversing a decade-old agency interpretation that exempted same-employer renewals from the charge.

The rule requires H-1B/L-1 dependent employers to pay the 9-11 Biometric Fee on every extension petition, even when the employee stays with the same company. The fee is $4,000 per H-1B extension and $4,500 per L-1 extension, and it used to apply only to new hires and to workers switching employers.

The rule goes into effect September 9, 2026, 30 days after its scheduled publication in the Federal Register.

What does the final rule actually change?

Before this rule, companies didn't pay the 9-11 Biometric Fee when an H-1B or L-1 worker simply extended their status with the same employer. The fee only kicked in when someone got the visa for the first time or moved to a new employer.

Once it goes into effect, employers must pay the fee every time an H-1B or L-1 employee extends their status, even if for the same company. There's no more exemption for renewals where nothing about the job changed.

Only "covered employers," who are companies with 50 or more U.S. employees where more than half of the staff hold H-1B or L-1 status, are affected by this rule.

Why did the Department of Homeland Security do this?

DHS says the fee is supposed to help fund the government's biometric entry-exit tracking system, but actual collections have fallen far short of projections. Under the new rule, DHS estimates the share of H-1B petitions from covered employers subject to the fee would jump from 27 percent historically to about 75 percent.

Manifest immigration attorney Ana Gabriela Urizar says employers who sponsor H-1B or L-1 should check now whether they meet the covered employer threshold. “If they do, they need to budget for this fee on every extension filing going forward, not just the first one, since that changes the yearly cost of keeping someone in H-1B or L-1 status,” she says.