Overhaul of H1B Visa Lottery System: US Unveils Substantial Fee Increase and Restructures Application Process

The US Citizenship and Immigration Services (USCIS) has issued two final rules for the H-1B visa program, which enables US employers to hire foreign workers in specialty occupations. The changes include a significant increase in visa fees, with the first fee hike since 2016, and alterations to the lottery process for the H-1B cap. The new lottery will prioritize individual beneficiaries rather than employers, ensuring equal chances and preventing fraudulent multiple registrations for the same person. These rules will be applicable for the FY 2025 H-1B cap.

Starting from the FY 2025 initial registration period, USCIS will require registrants to provide valid passport information for each beneficiary. The regulations also clarify employment start date requirements, allowing flexibility for petitioners to request a start date after October 1 of the relevant fiscal year. USCIS is granted authority to deny or revoke H-1B petitions containing false information, strengthening program enforcement.

A new Fee Schedule final rule will take effect after the FY 2025 initial registration period, increasing fees for certain H-1B petitions and applications, and introducing a new fee for H-1B registrations. The fee adjustments aim to cover processing and adjudication costs.

Organizational accounts will be launched on February 28, 2024, facilitating collaboration between employers and representatives in H-1B registrations, petitions, and forms. Online filing options for non-cap H-1B petitions (Form I-129 and Form I-907) will be available from the same date, improving convenience and efficiency.

Despite these changes, the American Immigration Lawyers Association (AILA) expressed dissatisfaction with the fee increases, stating that the USCIS fee-funded model is unsustainable. AILA urged USCIS to use additional revenue to reduce processing times and encouraged generous use of fee waivers.

USCIS Director Ur M Jaddou emphasized that the new regulations and online services aim to enhance the H-1B program, making it more equitable and transparent. The improvements will facilitate a fully electronic H-1B process from registration to the final decision.

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