I-94 expiring before H1-B Extension in TARP company

[simplequestion]

My company has taken TARP money and therefore has all the restrictions on H1-Bs. Company H1-B extensions will now have to go through some extra evaluations and approvals.

My H1-B is expiring in August 2009 and my I-94 is expiring in May 2009 (my old passport was expiring then. I have a new passport now though). Our lawyer was planning to apply for H1-B extension in March but now is finding it tough getting the approvals for doing the same.

I am not sure what to do now. Should I just wait and take a risk or...

1) Should I go out of the country and get a new I-94? I do not have VISA Stamping in my passport and will have to go for Visa Stamping as well? Some of my friends are scaring me saying it is not a good time to go for stamping and that too when you only have about 5 more months on H1-B and from a tarp company.
2) Can I apply for I-94 extension from within USA? In that case will I have to wait for my I-94 to be extended before applying for my H1-B extension?
3) For preparing for the worst case, can I apply for a H1-B transfer with some other company and continue working on my current H1-B. If there is any problem jump onto the newly transfered H1-B?

Please provide your valuable suggestions. Thanks in advance.

[kondur_007]

To my best knowledge you have two options:

1. Go outside US, get H1 stamped (I don't think there should be any issue just because you have five months left) and come back with new I 94 that is valid till the end of your H1 visa approval. I do not see any problem or risk with this as long as you have not been out of status or anything else wrong... The only issue with this approach is that you still have to go for extension or transfer of your H visa before the current one expires(aug 2009); this new I 94 will buy you only a few more months (may to aug 2009).

2. Apply for extension or transfer (this must be done before your current I 94 expires). In that case (as long as you have been in status all the way through), your new H1 may come with new I 94. However, if your extension or transfer is denied, then you will have to leave by the expiry date of current I 94 (or if it is already passed, then the day you receive the denial). The main advantage of this option is, if it is approved, you will be good to go for another three years (assuming your extension is for three years). The main disadvantage is that if it is denied before aug 2009 , then you will loose the time between May 2009 and Aug 2009 (as you will have to leave by May 2009 or the denial letter date , whichever is later).

Pick the one you think have the best success chance. (if the realistic chance of extension or transfer is good, go with option 2, as even with option 1, you will be in same situation in a few months).

Good Luck.

[determined_indian]

I am working for a TARP company as well, but, heard that general consensus was - extensions will not be impacted by new restrictions (this is yet to be confirmed by DOL / USCIS)..

http://www.hooyou.com/news/news030609h1b.html

Do you know what approvals your lawyer is waiting for?

[simplequestion]

Thanks Kondur007 for your reply.

determined, yes there are no restrictions as such on H1-B extensions. But I am not sure why our company is putting some extra steps before the extensions. The details of those steps are not yet known though (atleast for us), sorry.