Elon Musk on March 19, 2004 in Los Angeles, California. Media reports indicate that Elon Musk worked… [+] His being in the United States illegally early in his career speaks to some of the challenges in the American immigration system. (Photo Paul Harris/Getty Images)
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Elon Musk worked illegally in the United States early in his career, illustrating some of the challenges in the U.S. immigration system, according to media reports. People see the story as ironic, given Musk’s fierce advocacy against illegal immigration. Still, the details highlight how difficult it is for international students and entrepreneurs to obtain permission to work legally in the United States. Compared to his advocacy on other issues, Musk has spent little time arguing for improvements to the U.S. legal immigration system.
Background on Elon Musk’s immigration status
Long before South African-born Elon Musk became one of Donald Trump’s biggest donors and campaign agents, he dropped out of a graduate program in California to start his own business, former business associates say. Maria Sacchetti, Faiz Siddiqui and Nick Miloff reported, “Court records reveal that he started his career at home and was working illegally in the U.S.” and company documents obtained by The Washington Post. .
Reporters found that Musk “had no legal right to work” when he and his brother Kimbal founded and raised investment in a company later named Zip2. Kimbal Musk has long been open about their lack of legal status, even explaining in a video interview that he lied while crossing the US-Canada border to attend a business conference in Silicon Valley. I was doing it. “It’s immigration fraud,” said immigration lawyer Ira Kurtzban. He also pointed out that Elon Musk’s younger brother could have been permanently banned from the United States. Instead, he became the CEO of Musk’s first company.
The Washington Post reported, “(Elon) Musk came to Palo Alto in 1995 for a graduate degree program at Stanford University, but did not enroll in the course and instead worked on his startup.” . This means Musk has committed at least two violations of immigration law. First, he violated his status as a student by not taking the class. Second, he did not have permission to legally work in the United States.
Without the right to legally live and work in the United States, Musk could not continue to run a company that accepts venture capital. According to the Washington Post, Musk has been disqualified for more than a year. “One person who joined Zip2’s human resources department in 1997 remembers processing work visas for the Musks and other family members in the category available to Canadians under the North American Freedom Visa.”Trade Agreement . ”
International students are often prevented from staying in the United States
Elon Musk’s story tells us a lot about the US immigration system. First, it’s no surprise that Elon Musk realized he couldn’t stop being an international student and just start working. Currently, international students can undertake optional practical training, but this does not guarantee that they will be able to obtain employment in the United States after completing OPT.
Second, international students typically need to obtain H-1B status in order to work long-term. In 1997, employers reached the annual limit for H-1B petitions and have done so every year since 2004. As a result, U.S. Citizenship and Immigration Services uses the H-1B lottery. In recent years, USCIS has selected only about one in four applicants or registrants. The annual cap on H-1Bs is 65,000, with an exemption of 20,000 for those with graduate degrees from U.S. universities, which accounts for only about 0.05% of the U.S. workforce.
Third, annual limits for employment-based green cards are also low, and when combined with country-specific limits, Indians can be forced to wait decades for permanent residency.
Kimbal Musk attends the 2022 SXSW Conference and Festival at the Austin Convention Center on March 14, 2022… [+] Located in Austin, Texas. (Photo by Chris Saucedo/Getty Images fpr SXSW)
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No immigrant visa for entrepreneurs
In a 2021 interview, Kimbal Musk said he and Elon would have complied with the law if it were possible. “I tried to get a visa, but there’s no visa you can get to do a startup,” Kimbal said. “I was definitely illegal.”
Kimbal Musk is right that there is no immigrant entrepreneur visa under U.S. law. Congress could have created the program as part of the CHIPS and Science Act in 2022. The Democratic majority in the House passed a bill that would grant green card status to individuals if their startup meets certain criteria, including attracting venture capital. However, Sen. Charles Grassley (R-Iowa) blocked the provision from becoming law in a conference committee. Mr. Grassley also blocked the bill from waiving the annual green card limit for foreign nationals with doctoral degrees. Those in science and technology fields and those with master’s degrees in “key industries”.
According to an analysis by the National Policy Foundation, 55% of America’s billion-dollar startups have at least one immigrant founder. A separate NFAP study found that nearly two-thirds (65% or 28 of 43) of the top U.S. AI companies were founded or co-founded by immigrants. 70% of full-time graduate students in artificial intelligence-related fields are international students.
Donald Trump is unlikely to liberalize business immigration
An analysis of the Trump administration’s policies concluded that during Donald Trump’s presidency, the administration enacted or proposed no measures to expand the entry of highly skilled foreign nationals or immigrants into the United States.
A court has blocked Trump officials from tightening policies against “illegal aliens” for international students who have had their immigration status revoked. The Trump administration’s Department of Labor has twice proposed rules aimed at excluding H-1B visa holders and employment-based immigrants from the U.S. labor market. H-1B denial rates skyrocketed until a legal settlement forced Trump officials to halt numerous violations that judges had declared. The National Venture Capital Association has sued the Trump administration, accusing it of refusing to implement a program that would allow foreign entrepreneurs to stay in the United States.
Elon Musk has made at least $132 million in political contributions, primarily to elect Donald Trump, according to Fortune magazine. If President Trump was hoping to make it easier for aspiring immigrants like a young Elon Musk to succeed in America, Musk may be disappointed.
