The Trump administration’s sudden H-1B visa fee hike to $100,000 per application has triggered a wave of criticism and legal scrutiny, with California’s top lawyer signaling that the state may challenge the move in court.

Attorney General Rob Bonta, speaking to Bloomberg News, called the change “a major disruption” to the system that Silicon Valley and other sectors rely on to recruit global talent. He said the state is “looking at it carefully” to determine whether it violates the federal Administrative Procedure Act, which bars abrupt rule changes without public notice.

“We are looking at it…we will assess whether there’s a legal violation,” Bonta said. “If it’s a policy that we don’t agree with but it’s legally sound, we won’t challenge it. But if it’s unlawful, we will.”

Story Highlights

• H-1B visa fee hike: $100,000 per application announced by Trump administration.

• California review: AG Rob Bonta says move undermines certainty for businesses.

• Legal focus: Potential breach of Administrative Procedure Act.

• Economic stakes: Silicon Valley, finance, and consulting firms face rising costs.

• Political fallout: Senator Chuck Grassley calls to end student visa work permits.

• Global contrast: Germany touts “predictable” immigration policy for Indian professionals.

Shockwaves Through Business and Tech

The H-1B visa fee hike represents one of the steepest increases in the program’s history. For California, home to the world’s largest tech ecosystem, the stakes are high. Bonta pointed out that “businesses and people want certainty from the government — and you just don’t get that that often, unfortunately, from the Trump administration.”

Not just technology companies but also finance firms and consultancies depend on the visa to bring in skilled engineers, analysts, and programmers. JPMorgan Chase economists estimate the change could reduce immigrant work authorizations by as many as 5,500 each month.

“We wouldn’t be here without the talent that has come to California on these visas,” Bonta said, underscoring the state’s reliance on the program.

Trump Administration’s Rationale

In a press call, Commerce Secretary Howard Lutnick framed the H-1B visa fee hike as a strategic reset.

“A company that wants to buy an H-1B visa… it’s $100,000 per year,” Lutnick said. “No longer will you put trainees on an H-1B visa — it’s just not economic anymore. If you’re going to train people, you’re going to train Americans.”

The administration has argued that the changes will preserve high-skilled opportunities for U.S. workers, a long-standing demand from conservative groups who claim the program displaces Americans.

A Broader Political Battle

The H-1B visa fee hike has also reignited debate over other immigration programs. Republican Senator Chuck Grassley has asked the Department of Homeland Security to end work permits for foreign student visa holders, saying they “compete against” Americans and pose security risks.

“DHS needs to stop issuing work authorizations to student visa holders who compete against Americans,” Grassley wrote on X, confirming that he sent a letter to DHS Secretary Kristi Noem urging action.

This move reflects a broader push by conservative lawmakers to restrict employment opportunities for non-U.S. citizens at a time when businesses say they need more skilled workers, not fewer.

Germany Offers a Counter-Example

As the U.S. imposes the H-1B visa fee hike, other nations are highlighting their openness. German Ambassador to India Philipp Ackermann used the moment to draw a sharp contrast, noting that Indian professionals are thriving in Germany.

“Indians are among the top earners in Germany. The average Indian working in Germany earns more than the average German. That’s pretty good news because it shows Indians are contributing big time to our society and welfare,” Ackermann said.

He also likened Germany’s migration policies to its cars — reliable and predictable.

“Our migration policy works a bit like a German car. It’s reliable, it is modern, it is predictable. It will go in a straight line with no zigzags. And you don’t have to fear a full break at a top speed. We do not change our rules fundamentally over time,” he added, encouraging highly skilled Indians to explore opportunities in Germany.

The H-1B visa fee hike has transformed a long-running immigration debate into a high-stakes legal and economic fight. California’s review of the $100,000 charge signals a possible courtroom clash that could reshape how U.S. businesses hire global talent. With tech firms, finance companies, and consultancies all relying on skilled foreign workers, the outcome will reverberate far beyond Silicon Valley. At the same time, Germany’s contrasting message of stability underscores how international competition for talent is intensifying as the U.S. tightens its visa policies.

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