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Firms rush H-1B workers to U.S. to avoid new fee, says top immigration lawyer
Previously, EAD holders applying for a renewal were automatically granted an extension of their work permit for up to 540 days.
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Ishani Duttagupta - Mon, 08, Dec 2025
- 15:53 EST
- 19
Visa / google
With the US Citizenship and Immigration Services (USCIS) ending the policy that automatically extended the validity of Employment Authorization Documents (EADs) for workers who filed renewal applications; Indians in the US on H-4, or H-1B spouse, visas are facing significant delays and uncertainty.
Previously, EAD holders applying for a renewal were automatically granted an extension of their work permit for up to 540 days. This allowed them to continue working legally while USCIS processed cases.
Also Read: US Senator flags H-1B abuse, raising questions for Indian tech talent
H-4 spouses, who need the EAD card to work legally, must now wait for USCIS to fully approve and issue a new EAD card before they can continue their employment after their current card expires. This means employment interruptions are likely for those facing renewal delays.
“We are seeing some delays impacting both H-4 EAD and optional practical training (OPT) renewal applications. For students renewing their OPT through the STEM extension, these delays are less disruptive because they are permitted to continue working for up to 180 days beyond their OPT expiration while the extension is pending. However, for H-4 EAD holders, the situation is more challenging. Due to a recent change in government policy, H-4 spouses are no longer authorized to work while their EAD extension is pending, which has caused employment interruptions for some individuals,” says Aaron Blumberg, partner at leading immigration law firm Fragomen.
Meanwhile, with the new $100,000 H-1B fee having taken effect, many applicants from India have been hit. The greatest impact is being seen on H-1B applications filed by employers that are exempt from the annual cap of 85,000, such as universities and affiliated non-profit organizations.
“Employers across the board have been reluctant to pay the fee and are instead taking steps to avoid triggering it, primarily by ensuring H-1B beneficiaries are physically in the United States and eligible for an in-country change of status, which does not invoke the new fee,” Blumberg says. For individuals hired from abroad, some employers have submitted National Interest Exception (NIE) requests to bypass the fee; however, to date we have not seen any adjudications of those requests, he adds.
Project Firewall, a recent initiative by the US Department of Labor to crack down on abuse of the H-1B visa program and ensure that companies prioritize qualified American workers for high-skilled jobs, is also having an impact on H-1B applicants. Even though Project Firewall doesn’t change the fundamental eligibility requirements for H-1B visas, but it reshapes the compliance burden and risk calculus
“With proactive, secretary-certified investigations, employers must assume that any petition could face scrutiny and even small inconsistencies may draw attention. Many organizations are reassessing their risk profile, including when changes in salary, responsibilities or work location are significant enough to trigger an H-1B amendment given the increased oversight,” says K. Edward Raleigh, partner at Fragomen.
He adds that interagency co-ordination raises the stakes further because the Department of Labor can flag an issue that quickly moves to USCIS or the Department of Justice. “In this environment, employers are focused on ensuring they can identify and produce all required records and that their practices meet all the regulatory requirements.”
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