US Faces Criticism Over Alleged $1bn Immigration Fee Collection Without Processing

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The government of the United States has come under criticism over allegations that it collected more than $1 billion in immigration fees for applications that have not been processed, affecting applicants both inside and outside the country.

Gatekeepers Newreports that the claim was raised by policy analyst David J. Bier during testimony before the United States Senate. Bier argued that current immigration measures have effectively halted the processing of several applications even as authorities continue to receive payments.

“This is the largest fraud in the history of the US immigration system,” Bier said. “It is likely the first $1 billion fraud — a theft of processing fees for services never rendered.”

The controversy follows a series of immigration policies introduced under President Donald Trump and implemented by federal immigration agencies.

One of the policies restricts entry and limits visa approvals for citizens from 40 countries, including Nigeria, Iran and Haiti. According to reports, some applicants are not informed of their ineligibility before visa interviews, meaning many still proceed with their applications and pay the required fees.

Another measure reportedly extends restrictions to immigrants already residing in the United States, freezing applications for benefits such as work permits and permanent residency. The policy applies to individuals from the affected countries regardless of how long they have lived in the country and does not have a stated end date.

In addition, the United States Department of State has suspended immigrant visa processing for nationals of 75 countries, citing concerns that some migrants may depend on public welfare. Critics argue that US law requires immigration cases to be assessed individually rather than through broad restrictions based on nationality.

The policies also affect the diversity visa lottery programme. While applicants can still submit forms and attend interviews, visas are reportedly not being issued.

Combined, the measures impact nationals from 92 countries, which together account for a significant share of legal immigration to the United States. Estimates suggest that around two million applications have been blocked, including more than 320,000 applicants abroad and over 500,000 potential residents already within the country.

Immigration applications often involve multiple fees. For instance, sponsoring a spouse can require payments totalling about $2,675 for petitions, residency processing and work authorisation.

Lawmakers have also reacted to the allegations. Republican Senator John Kennedy said he was “shocked” by the situation.

Bier urged Congress to intervene, stressing the need to restore processing and ensure fair treatment of applicants.

“If someone cannot establish their eligibility, they can be denied under the law, but there is no reason to steal people’s fees and fail to provide the service the law entitles them to.”

He added that Congress should require authorities to resume processing applications and ensure that immigration cases are adjudicated fairly, without discrimination based on nationality.