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H-1B fee hike order rushed, now being rolled back like ‘toothpaste back in the tube’: Former diplomat Sachdev

A former top Indian diplomat is slamming the US government’s abrupt hike in H-1B visa sponsorship fees to $100,000, calling it a hasty move that still disrupts the flow of skilled Indian professionals to America, even after some tweaks.

Mahesh Sachdev, a veteran in international affairs, pointed out how the US dropped this bombshell over a weekend with barely 24 hours’ notice for those affected. “They’re trying to put the toothpaste back in the tube,” he quipped, suggesting the administration rushed in and now faces backlash.

Sachdev believes US companies employing H-1B workers fought back hard against the initial plan. That pressure led the government to narrow the rule: it now applies only to new H-1B visa applicants and hits employers just once. “This puts some outer limits on the chaos,” he said, but warned the bigger issue lingers.

The core problem, in his view, is that this policy blocks the easy movement of talented Indian tech experts that the US desperately needs. Yet, the current administration seems laser-focused on its MAGA supporters, who argue foreign workers steal jobs from Americans and fuel IT unemployment. Sachdev calls that view only half-right. “US IT unemployment sits at about 6% for citizens, compared to 3% overall,” he explained, adding that rapid tech shifts leave many workers with outdated skills behind. “People must relearn and adapt— that’s the real driver of job losses,” he noted.

For US firms chasing innovation, flexibility is key. “Companies can’t afford to wait around training locals,” Sachdev stressed. “It’s a tough choice: upskill Americans or bring in experts from abroad where the talent is ready.”

This all stems from a new US rule kicking in on September 21, slapping a one-time $100,000 fee on H-1B visa sponsorships for fresh skilled foreign workers. The goal? Tighten entry for immigrants in tech and other high-demand fields.

The sudden announcement sparked panic among Indian professionals already in the US. Immigration lawyers urged H-1B holders and their families abroad to rush back within 24 hours or risk getting stuck. But the White House soon stepped in with clarity: the fee targets only new applicants, sparing current H-1B visa holders and bringing some relief to the program that powers so much of America’s tech scene.


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