“Trying to Put Toothpaste Back in the Tube”: Ex‑Diplomat Sachdev on H‑1B Fee Hike Clarification

Mahesh Sachdev says backlash led U.S. to narrow scope, but core concerns remain for Indian tech professionals

Former Diplomat Criticizes Sudden H-1B Visa Fee Hike

Veteran diplomat Mahesh Sachdev has strongly criticized the U.S. administration’s abrupt move to impose a $100,000 fee on H-1B visa applications, calling it hasty and poorly implemented. Despite a partial rollback, Sachdev says the damage is already done and the impact on Indian professionals remains significant.

“They are trying to put toothpaste back in the tube,” Sachdev remarked, referring to the administration’s last-minute clarification after intense backlash.

What Triggered the Clarification?

The U.S. initially announced the fee would apply to all applicants, triggering panic among H-1B visa holders and businesses.
The clarification came quickly after criticism, stating the $100,000 fee will now apply only to fresh applications — not to renewals or current visa holders.
According to Sachdev, this shift likely came after strong opposition from American tech employers who rely heavily on skilled foreign workers.

Core Concerns Still Exist, Says Sachdev

Even with the narrowed scope, Sachdev believes the core problem remains unchanged: the U.S. continues to restrict the entry of qualified Indian professionals.

“This will hamper the free flow of technically skilled personnel from India, who are in demand in the U.S.,” he said.

He added that the Make America Great Again (MAGA) political base may have influenced the original decision, as it often sees foreign workers as a threat to local employment.

Is the Justification Accurate? Only Partially, Says Sachdev

The belief that foreign workers are replacing Americans is “only partially correct,” according to the former diplomat.
The U.S. IT industry has an unemployment rate of about 6%, compared to the national average of 3%, but this gap is mostly due to rapid technological change, not outsourcing.

“People with outdated skills are being phased out, not necessarily replaced by foreigners,” he said.

U.S. Tech Firms Need Flexibility

Sachdev emphasized that American companies need the freedom to innovate, and this includes hiring talent from anywhere in the world.

“Companies can’t afford to wait — they need the right talent, right now,” he explained. “If locals don’t have the skills, firms must be allowed to bring in experts.”

Background: What Is the New H-1B Policy?

The new $100,000 fee applies only to new H-1B visa applications filed from outside the U.S.
The policy took effect on September 21.
The White House later clarified that current visa holders and renewals would not be impacted, offering some relief.

Conclusion: Damage Already Done?

While the U.S. has walked back parts of the policy, Sachdev insists the initial chaos has already created uncertainty and anxiety among businesses and visa applicants.