'Trying To Put Toothpaste Back In Tube': Ex-Diplomat On H-1B Visa Fee Hike Clarification

US implements a one-time $100,000 fee for new H-1B visa applications.

New Delhi:

Former senior diplomat Mahesh Sachdev has criticized the US administration's abrupt decision to increase H-1B visa sponsorship fees to $100,000, describing it as a hasty move that continues to restrict the mobility of Indian professionals despite subsequent modifications.

"After dramatically escalating this issue with barely 24 hours' notice over a weekend for affected stakeholders, they're attempting to reverse course on this drastic measure," Mr. Sachdev remarked.

He suggested that American companies employing H-1B workers likely pressured the administration to reconsider its initial order. "Employers of H-1B personnel would have strongly protested to the administration, causing them to narrow the scope by specifying it would apply only to new entrants and only once. I believe this establishes some boundaries on the situation," he observed.

Nevertheless, Mr. Sachdev emphasized that the fundamental issue created by the original order remains. "It will impede the flow of skilled personnel, predominantly technically qualified Indians going to the United States because they're needed there, but the US wants to dictate terms. The current administration appears heavily focused on its MAGA base, which believes it has been disadvantaged in services," he stated.

According to him, this perception is only partially accurate. "The belief that too many foreigners are replacing American workers and causing unemployment in the US IT sector is only partly correct. The US IT industry has approximately 6% unemployment among US citizens, compared to around 3% for the general American population," Mr. Sachdev explained.

He attributed much of this disparity to rapid technological advancement. "This is primarily because the IT industry evolves very quickly. People with outdated skills are no longer in demand. They need to retrain themselves and acquire new knowledge, which contributes to unemployment issues," he noted.

Mr. Sachdev highlighted that American companies need flexibility to innovate. "Companies don't want delays; they aim to pursue innovation, and if that requires foreign expertise, they face a dilemma. Either train local talent and wait for skill development, or source skills from wherever they're available," he stated.

In this context, the United States has implemented a one-time fee of $100,000 for new H-1B visa applications, as part of measures intended to further limit foreign skilled worker entry.

The announcement, effective September 21, initially caused alarm among Indian professionals in the US, with immigration lawyers and firms warning H-1B holders and their families outside the country to return within 24 hours to avoid being stranded.

However, the White House later clarified that the new fee would only apply to new applicants, not existing visa holders, providing reassurance to current beneficiaries of the program.