Former Indian diplomat Mahesh Sachdev calls US President Donald Trump’s new H-1B visa fee a double-edged sword. Signed on Friday, the policy slaps a hefty $100,000 annual charge on H-1B applications for workers outside the US. Sachdev warns it could stifle America’s buzzing IT innovation while hitting Indian companies hard as they chase US markets. But it might also push more outsourcing back to India and boost local hiring there.
Trump’s move, kicking in on September 21, targets what his administration sees as abuse in the H-1B program. The visas let companies bring in skilled foreign workers, but critics say IT outsourcing firms use them to swap out American jobs and keep wages low. The fee could add up to $300,000 over a typical three-year visa, and employers must prove they’ve paid it when filing petitions. Only a few exemptions apply for national interest cases, with the State and Homeland Security departments handling enforcement.
Sachdev, a seasoned ex-diplomat, says the policy mainly aims to win over Trump’s MAGA supporters. They often claim foreign workers steal high-paying US jobs from Americans. “It’s exaggerated,” he told . Companies sometimes fire locals to hire H-1B visa holders, but Sachdev questions if that’s because of cheaper pay or simply because these workers bring top-notch skills and efficiency.
The US thrives on talent in IT and tech, Sachdev points out. “America is super competitive and innovative,” he says. “By adding these barriers, they’re hurting their own industry—they need global brains to stay ahead.”
India feels the pinch most. Last year, Indian passport holders snagged 71% of H-1B approvals, making the program a lifeline for Indian IT giants who export services to the US. “Our companies rely on this for their biggest market,” Sachdev notes. The new rules could force big changes.
To fight back, Indian firms might ramp up outsourcing work straight to teams in India, dodging the visa costs. They’ll likely hire more locals in the US too—think Indian-Americans already there or even US citizens and other foreigners. Sachdev also predicts court battles: “This might not fit the government’s powers, so expect judicial reviews.”
Trump’s proclamation argues the H-1B program has strayed from its goal of attracting elite talent. Instead, it claims low-wage hires hurt American grads and raise security risks, like visa fraud and money laundering tied to heavy users of the visas. As the debate heats up, this policy spotlights the tug-of-war between protecting US jobs and fueling tech growth.
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