US citizenship likely to cost 75% more: What does this mean for Indians in America?

For hundreds of thousands of immigrants who have spent years building their lives in the United States, obtaining American citizenship is often viewed as the final milestone in a long immigration journey.

That path, however, could soon become considerably more expensive.

The US Department of Homeland Security (DHS) has unveiled a proposal that would sharply increase the fees associated with becoming a naturalised American citizen.

The proposed changes, published through a Notice of Proposed Rulemaking (NPRM) on June 22, would raise the cost of filing Form N-400 — the application used by lawful permanent residents seeking US citizenship — by between 75 and 80 per cent depending on the filing method.

The proposal also seeks to remove existing fee concessions for lower-income applicants and eliminate fee waivers that have historically helped eligible immigrants access the naturalisation process.

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The proposal arrives at a time when immigration costs across multiple categories have been increasing and when many Indian immigrants continue to navigate lengthy and often expensive pathways from temporary work visas to permanent residency and eventually citizenship.

What exactly has DHS proposed?

At the centre of the proposal is a dramatic increase in fees for Form N-400, the document used by lawful permanent residents, commonly known as green card holders, to apply for American citizenship.

Under the current fee structure introduced in 2024, applicants filing on paper pay $760, while those using the online system pay $710.

DHS now proposes raising those amounts to $1,330 for paper submissions and $1,280 for online filings.

That means:

The proposal extends beyond citizenship applications themselves.

Applicants seeking to challenge a naturalisation denial through Form N-336, officially known as a Request for Hearing on a Decision in Naturalization Proceedings, would also face substantial increases.

For those cases:

The proposed increases are among the largest percentage jumps across major immigration benefits administered by US Citizenship and Immigration Services (USCIS).

The proposal also affects a wider range of immigration services, including employment authorisation requests, humanitarian programmes, asylum-related applications, adjustment-of-status filings and certain family-based immigration processes.

In effect, DHS is proposing a broad restructuring of how immigration benefits are funded, with naturalisation becoming one of the most prominent examples.

Why is the elimination of fee reductions raising alarm?

One of the most consequential aspects of the proposal is not simply the increase in standard filing fees but the removal of affordability measures that many immigrants have relied upon.

Currently, some applicants with household incomes below specified thresholds can access a reduced filing fee. Under the existing system, qualifying applicants may pay $380 instead of the full fee.

DHS is proposing to abolish that option entirely.

The agency also wants to eliminate fee waivers associated with Form N-400 applications. Fee waivers have historically enabled eligible low-income immigrants to seek citizenship without paying the full filing cost.

If the proposal becomes law, applicants who previously qualified for a reduced fee would face the same $1,330 charge as all other applicants.

For many lower-income immigrants, this translates into an increase of approximately 250 per cent compared with what they currently pay.

Military personnel would remain among the few categories exempt from the full costs.

The removal of reduced fees and waivers has generated concern among immigration advocates who argue that citizenship should remain accessible regardless of income level.

Immigration advocacy organisation CLINIC has previously warned that increases in filing costs and restrictions on fee-waiver programmes could disproportionately affect lower-income immigrants and discourage eligible individuals from pursuing naturalisation.

Because citizenship represents the culmination of years of legal residence and compliance with immigration requirements,  many argue that financial barriers may prevent otherwise eligible residents from completing the process.

Why does the US govt say the increases are necessary?

According to DHS, the proposed changes are intended to address a significant funding imbalance within the naturalisation system.

Unlike many government agencies that depend heavily on taxpayer appropriations, USCIS operates primarily through fees paid by applicants. DHS estimates that roughly 96 per cent of USCIS funding comes from application and petition fees.

Officials argue that the current naturalisation fee structure does not adequately cover the costs associated with processing citizenship requests. According to the proposal, USCIS faces a naturalisation-processing shortfall exceeding $600 million each year.

The administration's proposal seeks to move the system toward what it describes as a "full-cost, beneficiary-pays" model. Under this approach, the individual receiving the immigration benefit would bear the full cost of adjudicating the application.

Historically, citizenship applications were priced below their actual processing cost. The resulting shortfall was effectively offset through fees collected from other immigration categories, particularly employment-based visa programmes.

The current proposal signals a departure from that model. DHS argues that applicants seeking citizenship should directly finance the services involved in reviewing their cases, including expanded screening measures, vetting procedures and background investigations.

A DHS official told Newsweek that the proposed changes were part of a routine review of agency fees and noted that current charges do not fully cover the expense of processing applications.

The official also stated that naturalisation remains "the most significant" immigration benefit available to immigrants.

Why could Indians be among the most affected?

India consistently ranks among the leading countries of origin for new American citizens and remains one of the largest sources of employment-based immigrants.

Many Indian nationals spend years progressing through multiple immigration stages. A typical pathway may involve arrival on a temporary work visa such as the H-1B, followed by employer sponsorship, acquisition of permanent residency and eventual eligibility for citizenship.

Because of extensive green card backlogs affecting Indian nationals, this journey can take many years and, in some cases, decades.

As a result, citizenship often represents the final step after a lengthy process involving substantial financial commitments.

According to data cited from the Congressional Research Service (CRS), approximately 290,000 India-born lawful permanent residents are currently eligible to become American citizens but have not yet naturalised.

For this group, the timing of the proposal is particularly important. Applicants who qualify today can still file under the current fee structure while the proposal remains under review.

However, if the new fees eventually take effect, those eligible applicants would collectively face more than $165 million in additional costs to complete the transition from permanent residency to citizenship.

Most green card holders become eligible for citizenship after five years of continuous residence in the United States, while those married to American citizens may qualify after three years.

Given the size of the Indian-origin population eligible for naturalisation, even relatively small increases in individual filing costs can translate into substantial cumulative financial impacts.

How could Indian families face a larger burden?

The effect of the proposal extends beyond individual applicants because naturalisation often occurs at the household level.

Indian immigration patterns frequently involve entire families transitioning through the immigration system together. Spouses commonly become eligible for citizenship around the same time, and many families also sponsor elderly parents who later qualify for naturalisation.

Under the current online filing structure, a married couple applying together pays a combined total of $1,420.

If the proposed rule takes effect, the same couple would pay $2,560.

The increase becomes even more significant when multiple family members are involved.

A household consisting of a couple and two elderly parents would face citizenship application fees totalling $5,120 under the proposed framework.

For middle-income households, such expenses may require significant financial planning. Rather than filing simultaneously, some families may choose to stagger applications over several years to manage costs.

Although Indian Americans are frequently cited as having among the highest median household incomes in the United States, the community is far from economically uniform.

A substantial portion of Indian immigrants does not work in highly paid technology or healthcare positions.

Family-sponsored immigrants, elderly parents, individuals employed by small businesses and workers in lower-paying sectors may have relied on reduced-fee provisions when applying for citizenship.

For these applicants, the proposal carries particularly significant implications.

Additional immigration expenses often compound these costs. Many immigrants have already incurred expenses related to visa applications, legal representation, adjustment-of-status filings, travel documentation and dependent applications before reaching the citizenship stage.

What next?

The proposed naturalisation fee increase is part of a wider pattern of changes affecting the US immigration system.

DHS has already implemented higher premium-processing fees across several immigration categories during 2026. One example is Form I-140 premium processing, which increased from $2,805 to $2,965.

Additional inflation-linked adjustments have also affected other immigration-related services. At the same time, changes in administrative procedures have introduced new considerations for immigrants and employers like a proposed $100,000 fee for an H-1B visa.

Despite the widespread attention, the proposal has not yet become official policy. The June 22 announcement represents a Notice of Proposed Rulemaking rather than a final regulation.

As part of the federal rulemaking process, DHS must first gather public feedback.

A 60-day comment period begins following publication of the proposal in the Federal Register. During this period, individuals, advocacy organisations, employers, attorneys and community groups may submit comments supporting, opposing or suggesting modifications to the proposal.

Following the consultation phase, USCIS must evaluate and respond to public submissions before issuing a final rule. Historically, this review process has taken anywhere from four to ten months, though timelines can vary.

The proposed fee increases are not expected to take effect immediately.

With inputs from agencies