California is considering a lawsuit after President Donald Trump imposed a $100,000 fee on certain high-skilled worker visas, a move that has unsettled Silicon Valley and prompted warnings from state leaders about the potential damage to the tech-driven economy, Politico reported.
Attorney General Rob Bonta’s office confirmed Wednesday that the state is reviewing legal options.
“President Trump continues to push forward an anti-immigrant agenda,” Bonta spokesperson Elissa Perez said in a statement to Politico.
“This latest move will harm our businesses and make our country less competitive in science, technology, engineering, and medicine — at a time when we can’t afford to fall behind. The California Department of Justice is closely monitoring the implementation of this EO [executive order] and its effects, which will determine any potential next steps.”
Bonta, a Democrat who has repeatedly challenged Trump administration policies, told Bloomberg that legal action may hinge on whether the fee can be justified.
“You need to have a reasoned justification,” he said. “It can’t be arbitrary, it can’t be capricious, and so we’ve brought cases on that basis quite a few times in the past, and it might be appropriate here, but we’re still looking.”
California’s tech sector, which relies heavily on foreign-born talent, has been scrambling to gauge the impact of the sudden change. Federal data shows that the state has led the nation in H-1B visa beneficiaries for fiscal 2025.
Companies including Amazon, Microsoft, and Meta reportedly urged employees abroad to return quickly after the announcement, and confusion briefly disrupted travel at San Francisco International Airport.
The White House has said the fee applies only to new applicants, not to current visa holders. Officials argue that the policy will create more job opportunities for U.S.-born workers.
On Tuesday, the administration proposed further changes to prioritize high earners in the visa lottery.
California Democrats denounced the fee as a blow to innovation. Gov. Gavin Newsom’s office called the changes “clearly focused on creating chaos rather than solving problems.”
“If we block an inflow of people who have the expertise to tackle our biggest challenges, we become less competitive, more insular, and slower to progress,” San Jose Mayor Matt Mahan said.
Assemblymember Matt Haney warned: “You can’t be the world leader in technology by punishing the world’s greatest minds with huge fines. This policy is a gift to every foreign tech hub that wants to overtake the Silicon Valley.”
State Sen. Dave Cortese noted that while tech giants could absorb the fee, startups would struggle. Rep. Sam Liccardo added that early-stage companies in fields such as artificial intelligence could be priced out of the talent market.
Reactions among business leaders have been mixed. Nvidia’s Jensen Huang and OpenAI’s Sam Altman underscored the importance of immigration without directly criticizing Trump. Netflix co-founder Reed Hastings even praised the fee, while Elon Musk has remained silent.
Meta executive Esther Crawford warned that the cost “will immediately be cost-prohibitive for early-stage startups to hire from that very talented pool. Big Tech can absorb the fees, startups can’t.”?
© 2025 Newsmax. All rights reserved.
