For multinational companies and their employees, the L-1 visa has long been a predictable and reliable path for intracompany transfers. However, two recent and significant developments in U.S. immigration policy are set to change the landscape, potentially leading to lengthy delays for L-1 visa holders and their families.

As of late 2025, employers and employees must prepare for the end of a key legal settlement and the implementation of new consular processing rules that will fundamentally alter how and where L visa applications are processed.

The End of the Edakunni Settlement and What It Means for L-2 Visas

A major procedural change began in January 2025 with the expiration of the Edakunni v. Mayorkas settlement. For two years, this settlement required U.S. Citizenship and Immigration Services (USCIS) to “bundle” and process L-1 petitions concurrently with the L-2 visa applications of the employee’s spouse and children, provided they were filed at the same time. This streamlined process was a lifeline for families, ensuring they could move to the U.S. together without lengthy separation.

With the settlement’s expiration, USCIS is no longer required to process these applications concurrently. This “unbundling” is expected to cause significant processing delays for L-2 dependents, even when the principal L-1 petition is approved quickly through premium processing.

The practical impact:

• Family Separation: An L-1 visa holder may be approved to start their U.S. assignment while their spouse and children face a separate, and potentially much longer, waiting period for their visas.
• Work Authorization Delays: Since L-2 spouses can work, delays in their visa approval directly impact their ability to seek employment in the U.S. and contribute to the family’s income.

New Rules for Consular Processing

On top of the changes to internal USCIS processing, the U.S. Department of State has also implemented a major new policy for consular interviews. As of November 1, 2025, all immigrant visa applicants will be required to attend their visa interview in their country of residence or nationality, with only limited exceptions for humanitarian or medical emergencies.

While this rule primarily targets immigrant visas, it directly impacts L-1A visa holders who are on a path to a green card through the EB-1C category. Previously, applicants could schedule interviews in third countries with shorter wait times to avoid backlogs at their home country’s consulate. The new policy removes this flexibility.

The practical impact:

• Reduced Flexibility: Applicants can no longer “shop” for a faster interview appointment in another country.
• Increased Wait Times: For individuals from countries with significant consular backlogs, this new rule could lead to longer processing times for their visas, affecting their immigration journey and business plans.

These recent changes signal a shift toward more restrictive and less flexible immigration policies for the L visa category. For businesses, this means that strategic planning is more critical than ever. The focus must now be on anticipating and mitigating potential delays for both employees and their families to ensure a smooth transition.

Navigating these complex and evolving regulations requires expert legal guidance. We can connect you with licensed immigration attorneys who specialize in L visa petitions and corporate transfers, helping you understand how these new rules may impact your specific case and develop a proactive strategy to protect your business and employees.

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Sources:

• U.S. Citizenship and Immigration Services (USCIS): Official policy updates on the expiration of the Edakunni settlement and changes to I-539/I-765 processing.
• U.S. Department of State: Official announcements regarding the new consular processing rules for immigrant visas.
• Legal News Outlets: Comprehensive analyses from sources like BAL (Berry Appleman & Leiden) and Boundless on the practical implications of these policy changes.