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California is reviewing legal options after President Donald Trump imposed a new $100,000 fee on high-skilled worker visas widely used by the state’s tech industry, Attorney General Rob Bonta’s office confirmed Wednesday.

“President Trump continues to push forward an anti-immigrant agenda,” Bonta spokesperson Elissa Perez said in a statement to American news website 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.”

Bonta, a frequent legal challenger of Trump administration policies, told Bloomberg that the state is evaluating whether the new fee could be considered “arbitrary” or “capricious” under federal law. “It might be appropriate here, but we’re still looking,” he said.

The White House announced the fee on Friday, leaving tech companies scrambling to assess the impact. Federal data shows California leads the nation in H-1B beneficiaries, with Silicon Valley heavily reliant on foreign-born engineers and scientists from countries such as India and China, Politico reported.

While the administration has since clarified that the fee applies only to new applicants, not current visa holders, uncertainty has rattled the industry. Some tech giants reportedly urged employees to rush back to the US after the announcement.

Critics, including Gov. Gavin Newsom’s office, slammed the move as “chaos” aimed at undermining California’s economy.

State lawmakers said smaller startups would be hardest hit, while big firms like Amazon and Microsoft could absorb the costs. “It places visas out of reach for smaller, early-stage startups who rely on highly specialized talent in AI, quantum computing, or other technologies,” Rep. Sam Liccardo said, quoted in Politico.

Some executives voiced guarded relief after learning the fee is a one-time cost, not annual, but many warned it could still chill recruitment. “You can’t be the world leader in technology by punishing the world’s greatest minds with huge fines,” Assemblymember Matt Haney said.

Industry figures remain divided, with Nvidia’s Jensen Huang and OpenAI’s Sam Altman stressing the importance of immigration, while Netflix co-founder Reed Hastings offered rare praise for the policy.