
In some ways, Silicon Valley’s courting of President Donald Trump upon his return to the White House has worked out for Big Tech: Corporate tax rates are expected to remain low, and the cryptocurrency and artificial intelligence industries likely won’t have to worry about strict regulation.
But in other ways, Trump’s haphazard policy approach has the potential to disrupt the country’s tech industry, leading some experts to worry that the administration will do more harm than good, writes CalMatters’ Levi Sumagaysay.
In September the Trump administration imposed $100,000 fees for new H-1B visa applications, arguing that the visa program companies use to employ foreign workers “has been deliberately exploited to replace, rather than supplement, American workers.”
But tech companies, including some in California, are among the nation’s biggest employers of H-1B visa holders. Top tech executives who also once held H-1B visas include Alphabet CEO Sundar Pichai, Tesla’s Elon Musk and Microsoft’s Satya Nadella.
The move could drive away a workforce that had helped propel the U.S. to the top of the tech industry, some experts say.
- Dan’l Lewin, former Microsoft executive: “We will lose (international) students’ financial contributions, their IQ and diversity in the room(s) that stimulates invention.”
Trump’s tariff policies — which include threats of 100% tariffs on imported computer chips for companies that don’t “build” in the U.S. — is also raising concern, particularly among those who say it will take years for the country to produce chips at the level of its competitors.
- Ahmad Thomas, CEO of Silicon Valley Leadership Group, a tech advocacy group: “Semiconductors are the backbone of the future of the AI economy. Unevenness with policies with such great economic value attached to them is challenging.”
New research from UC Berkeley’s Possibility Lab explores ways to address California’s most challenging problems while making sure individuals and communities are fully engaged and well served. Read the first in its series of reports on People-Centered Policymaking in the new CalMatters Knowledge Hub.
Other Stories You Should Know
Teachers facing Charlie Kirk fallout

The state’s largest teachers union is warning teachers to be more careful about expressing their opinions after more than a dozen California teachers have been disciplined for making comments following the September shooting of Charlie Kirk.
As CalMatters’ Carolyn Jones explains, the far-right provocateur died after being shot at a university event in Utah. Since then, at least 20 California teachers are facing disciplinary action for their comments related to Kirk’s death, including one Roseville middle school teacher who reportedly described Kirk as “a piece of s—” on their personal social media account.
In addition to the First Amendment, California has state laws that prohibit employers from firing workers over their political views. Strong union contracts have also helped keep the number of teachers facing retribution comparatively low: Texas, for example, is investigating at least 280 teachers for criticizing Kirk.
While teachers continue to be investigated for their comments, however, the California Teachers Association has advised members to practice extra precaution.
- David Goldberg, union president: “We tell educators, know your rights and bring in your union rep. We need to be careful in this climate and look out for each other.”
CA caps HOA fines

A new state law capping homeowners association fines quietly took effect this summer, which has the potential to save millions of residents from exorbitant penalties and help with the state’s affordability crisis, writes CalMatters’ Nadia Lathan.
Since July 1, HOAs are limited to fining homeowners $100 for violating rules — with exceptions made for rules related to public health or safety — down from hundreds to thousands of dollars. Lawmakers included this policy in a broader piece of housing legislation that was signed into law in June.
California is home to more than 50,000 HOAs that govern around 65% of the state’s homeowners. With a median of $278, monthly HOA fees in California are among the highest in the nation. For decades, lawmakers have proposed measures to make HOAs more transparent or chip away their ability to reject housing.
But some HOA board members argue that the new law curbs their ability to enforce neighborhood rules.
- David Zepponi, a lobbyist for HOA boards: “You don’t have the leverage anymore to get people to change bad behavior.”
And lastly: CA’s disjointed approach to homelessness

California lacks a unified, statewide approach for clearing homeless encampments, with some cities employing different sets of rules. CalMatters’ Marisa Kendall and video strategy director Robert Meeks have a video segment on how this patchwork of policies exposes unhoused people to more harm, as part of our partnership with PBS SoCal. Watch it here.
SoCalMatters airs at 5:58 p.m. weekdays on PBS SoCal.
California Voices
CalMatters columnist Dan Walters: It is in employers’ best interests that the governor pass an Assembly bill that would protect workers from extreme heat, and the issue shouldn’t be used as a political football.
CalMatters contributor Jim Newton: Though it’s unfair to demonize poverty, people’s issues with homelessness are vulnerable to the distortions of our own experiences.
As climate change and wildfires trigger an insurance market crisis in the state, little is known about the origins of the California FAIR plan, which was created for “riot-prone areas,” writes Bench Ansfield, assistant professor of history at Temple University.
Other things worth your time:
Federal workers in CA threatened with firings during government shutdown // The Sacramento Bee
CA voters were mailed inaccurate guides ahead of November special election // Los Angeles Times
Newsom calls for CA homeowner insurance recommendations in executive order // The Sacramento Bee
Judge halts Trump administration cuts to disaster aid for ‘sanctuary’ states // Los Angeles Times
ICE deportations in CA are up 78% under Trump, new data shows // San Francisco Chronicle
CA rolls out driver’s license with new design and security features // The Orange County Register
CA’s ancient glaciers are melting away for the first time in human history // KQED