USCIS Considers Fee Increase Amid Decreased Filings

We wrote in September about the gap in expected revenue by USCIS following the filing fee increase of Summer 2007.   We noted that the agency has a $282 million shortfall in expected revenues.

As a result of the announced 2007 fee increase, USCIS saw a surge in applications and hiring in 2007, ahead of a hefty increase which, for example, pushed the cost of applying for citizenship from $400 to $675.  USCIS was flooded with a record 7.7 million immigration applications in 2007 as applicants rushed to file before the new fee went into effect.  Not surprisingly, filings dropped off after the higher fee went into effect, as it has historically with other fee increases.

The resulting shortage in revenue has left USCIS struggling to find alternatives.  It is important to note that the sharp decline in immigration filings resulting from the eceonomic downturn will cause a further decrease in filings and revenues.

Alejandro Mayorkas, director of U.S. Citizenship and Immigration Services, told reporters last week in Los Angeles that USCIS is considering cutting costs, raising fees or reorienting revenue in the next two years to alleviate the revenue shortage problem.   “When one does hire additional personnel, and revenues two years later drop, one must be able to address that,” Mayorkas said.

Additionally, immigration officials are also looking to Congress for relief after requesting $206 million to pay for fees for asylum seekers and refugees and for military naturalizations.

While it is too early to know any details of any proposed USCIS fee hike, the tone of Director Mayorkas’ comments and the sharp economy-related drop in employment-based filings suggests that a USCIS fee hike is very possible.  We will continue to monitor any developments on this topic and update our clients and readers.