New Instructions Clarify USCIS Fee Rule Reductions and Exemptions for Higher Ed

On March 1, 2024, U.S. Citizenship and Immigration Services published updated forms and filing instructions for the I-129, Petition for a Nonimmigrant Worker and the I-140, Immigrant Petition for Alien Workers. These updates incorporate new fee calculations as outlined in the USCIS fee rule. Notably, the filing instructions state that institutions “of higher education, as defined in section 101(a) of the Higher Education Act of 1965” are eligible for the reduced fees and exemption from the Asylum Program fee.

This clarification follows the issuance of a final rule by USCIS on January 31, 2024, which adjusted the fees for most immigration applications and petitions, resulting in significantly higher fees for most employment-based petitioners. However, due to concerns raised by stakeholders, including CUPA-HR and other higher education institutions, the final rule provided relief for nonprofit organizations in the form of fee reductions as well as an exemption from a newly introduced fee intended to fund the Asylum Program.

In a previous blog post, CUPA-HR addressed the confusion stemming from the final rule’s reliance on the Internal Revenue Code’s definition of a nonprofit organization, particularly 26 U.S.C. 501(c)(3). This definition caused uncertainty among public universities and colleges, which, while tax-exempt, are not classified as 501(c)(3) entities. The preamble to the final rule suggested that the agency’s approach to defining “nonprofit” was designed to ensure that the primary types of organizations eligible for the American Competitiveness and Workforce Improvement Act’s fee reduction — specifically, educational institutions, nonprofit research organizations, and governmental research organizations — would also qualify for fee reductions and exemptions under this rule. However, the possibility of a strict interpretation of “nonprofit” might have left public universities and colleges facing increased fees.

The updated filing instructions offer much-needed clarity on the fee reductions and exemptions, ensuring that institutions of higher education as defined by the Higher Education Act of 1965 will not be overly burdened by petitioner fees.