California Weighs Legal Action Against Trump’s H-1B Visa Fee Hike

California Attorney General Rob Bonta

California is gearing up for a potential legal fight against President Donald Trump’s latest move to impose a $100,000 fee on H-1B visas, a program heavily relied upon by Silicon Valley’s tech industry. Attorney General Rob Bonta’s office confirmed that the state is “closely monitoring” the executive order and its possible consequences for California’s economy and workforce.

According to Bonta’s spokesperson, Trump’s new visa policy reflects his ongoing anti-immigrant stance and risks harming U.S. competitiveness in critical sectors such as technology, medicine, and engineering. The announcement, made abruptly last Friday, has already sent shockwaves through the tech industry, with companies scrambling to understand the scope of the new requirements.

Bonta emphasized that any such policy must be backed by proper justification and not appear “arbitrary or capricious,” suggesting that legal grounds may exist for a challenge. California has historically led the nation in H-1B visa beneficiaries, especially with workers from India and China fueling its tech growth. With the new policy, major firms and smaller startups alike are bracing for impact.

Tech Industry Reaction

Industry leaders and lawmakers across California have expressed alarm at the sudden rollout. While big players like Amazon, Microsoft, Meta, and Apple may be able to absorb the $100,000 fee, smaller startups in areas like AI and quantum computing could find themselves priced out of recruiting global talent.

Silicon Valley Representative Sam Liccardo slammed the move as chaotic and harmful to innovation, warning that it risks shutting doors for early-stage companies. Democratic lawmakers including Gov. Gavin Newsom also denounced the change as an attempt to destabilize California’s thriving tech ecosystem rather than solve workforce challenges.

Meanwhile, some industry voices have offered rare support. Netflix co-founder Reed Hastings cautiously welcomed the measure, while others, including Nvidia’s Jensen Huang and OpenAI’s Sam Altman, reiterated the importance of high-skilled immigration without directly criticizing the fee. Elon Musk, a former H-1B visa holder, has remained silent despite previously vowing to “go to war” for the program.

Uncertainty and Legal Path Ahead

The Trump administration has since clarified that the new fee applies only to new applicants, not existing visa holders, slightly calming initial panic. However, California lawmakers and tech leaders continue to press for answers, with many calling the rollout “confusing and reckless.”

State legislators admit options are limited. While Bonta explores legal avenues, funding relief from the state is unlikely given California’s looming budget deficit. Lawmakers fear the new policy could weaken California’s ability to attract top talent, slowing progress in vital industries and boosting global competitors.

As San Jose Mayor Matt Mahan put it: “Blocking the brightest minds from entering our state makes us less competitive and slower to progress. This is a self-inflicted wound on America’s future.”