California is the state with the highest number of H-1B visa approvals and labor condition applications in the nation, far ahead of New York and Florida. California sustains its center stage for skilled foreign labor in technology, engineering, health care, and finance, with about 80,190 certified labor condition applications in FY2025. Now, under the executive order signed by President Trump, a one-time $100,000 fee would be imposed on new H-1B petitions, an intervention that could reshape the state’s talent ecosystem and resonate with much of Silicon Valley.
Brief history of California’s H-1B program
According to a recent data report by the Department of Labor, California had accounted for 80,190 labor condition applications in the latest reporting period, pulling well ahead of Texas with 65,625 applications and New York with 36,046 applications after it. The above-mentioned figures tell a story of the industries operating in California, spanning from global tech giants in the Bay Area to leading research hospitals in Los Angeles. Employers such as Google, Apple, Facebook, and Stanford Health Care rely heavily on H-1B workers to fill positions in software development, data science, and medical research.
Key industries driving California’s H-1B use
The greatest demand for H-1Bs is in California’s technology sector. In Silicon Valley, companies annually sponsor tens of thousands of foreign nationals for positions in AI, cloud computing, and cybersecurity. Aside from tech, California’s biomedical and healthcare industries issue a large number of H-1B visas. Academic institutions and research hospitals, such as the University of California system, UCLA Health, and Cedars-Sinai, attract specialists from around the world to further innovative biotechnology research and clinical trials. Financial services, entertainment, and renewable energy sectors are also H-1B contributors. A recent analysis by San Francisco Chronicles says, “A Chronicle analysis shows that the H-1B program is uniquely important to the Bay Area, which has the second-most approved applications of any metro area and the second-greatest number of approved H-1B applications as a share of all workers.”
Overview of new $100,000 fee
September 21, 2025, marked the implementation of President Trump’s executive order that imposed a $100,000 fee for every new H-1B petition as detailed here, What are the new H-1B rules that President Donald Trump has announced. This fee is a one-time charge for petitions filed under the annual cap lottery or cap-exempt filings for beneficiaries outside the United States. It does not apply to existing visa holders or duplicate petitions. The administration passes the change as a measure for protecting U.S. workers, raising wage standards, and curbing perceived misuse of the program. Detractors, on the other hand, contend that it will place the visa out of reach for small businesses and entry-level applicants.
Possible impacts on California employers and workers
This hefty fee threatens to change hiring strategies across the California landscape. Larger corporations with deeper pockets could still sponsor the world’s top talent, but start-ups and medium-sized companies may risk being priced out. Early in their careers, professionals and recent graduates, who often enter the H-1B market at lower salary brackets, may find it practically impossible to secure sponsorship. Consequently, this may lead to a gradual halt to hiring in California for junior engineering, data analyst, or clinical research positions, eventually causing talent shortages that stymie innovation pipelines and delay project timelines.
Industry and advocacy groups react
Tech industry guides, including CEOs of big-name Silicon Valley companies, voiced apprehensions that the $100,000 fee would undermine America’s competitive edge in the global talent marketplace. Immigration advocacy organizations feel that H-1B visa makeover into “luxury work permits” could push engineering talents into Canada, Europe, and Asia with less favorable fee and sponsor criteria. While counter-argumentation maintains that higher fees would motivate firms to invest in the development of their local workforce and training programs.
Surviving in a new reality
California employers will have to revise their matrices for recruitment budgets and sponsorship policies. Some may consider using other visas, such as O-1 for workers of extraordinary ability, or EB-1 green card pathways, albeit with complexities and caps of their own. During the forthcoming comment period, the action of coalitions of policymakers and businesses proposing modifications or exemptions on the new fee for startups and academic researchers is expected. Meanwhile, skilled workers and employers must stay in the know of the changing regulations and be prepared to act as soon as possible to reduce the financial impact of the fee.
California’s status as the foremost state for H-1B visas is amplifying the impact of the new $100,000 fee. As the heart of the American engine for innovation, the Golden State now faces a critical crossroad: striking a balance between safeguarding domestic labor markets while enticing and securing foreign talent. How well California meets this challenge will forge its economic future and position it at the vanguard of technology, health, and research across the globe.
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