Former senior diplomat Mahesh Sachdev has sharply criticised the United States administration’s abrupt decision to impose a USD 100,000 sponsorship fee on H-1B visa applications, describing the move as rushed and poorly thought out, even as Washington later softened the order.
“After having suddenly escalated this issue, giving practically less than 24 hours’ notice to affected stakeholders, they are now trying to put toothpaste back in the tube,” Sachdev said.
He suggested that strong opposition from American employers reliant on H-1B workers may have forced the administration to scale back the measure. “The employers of H-1B personnel would have strongly demonstrated to the administration, leading them to circumscribe the order by saying it will apply only to new entrants and only once. So I believe it does put an outer bracket on the situation,” he noted.
Despite this clarification, Sachdev argued that the broader problem remains. “It hampers the free flow of technically qualified personnel from India, who are needed by the United States. Yet, the administration seems more focused on its MAGA base, which believes American workers are being displaced,” he said.
Calling this perception “only partly accurate,” the former diplomat pointed to structural issues in the US IT industry. “Unemployment in the US IT sector is about 6% compared to 3% overall. This gap is mainly because the industry is evolving rapidly, and people with obsolete skills are no longer in demand. They need to re-skill, and this fuels the problem,” he explained.
Sachdev underlined that innovation-driven American companies require flexibility. “Either you wait to train local talent, or you bring in experts from abroad. If you delay, you risk losing the edge in innovation,” he said.
The controversial order, which came into effect on September 21, initially caused panic among Indian professionals and their families in the US, with immigration lawyers warning of possible disruptions. However, the White House later clarified that the new fee would apply only to fresh applicants, not existing visa holders, offering relief to current beneficiaries.
