Media reports indicate that Elon Musk worked illegally in America early in his career, illustrating some of the challenges in the US immigration system. People see the story as ironic, given Musk’s strident arguments against illegal immigration. Still, the details highlight how difficult it can be for international students and entrepreneurs to get permission to work legally in the United States. Compared to his advocacy on other issues, Musk has spent little time advocating for improvements to the U.S. legal immigration system.

Background information on Elon Musk’s immigration status

“Long before he became one of Donald Trump’s biggest donors and campaign surrogates, South African-born Elon Musk was working illegally in the United States when he launched his entrepreneurial career after abandoning a college program in California, according to former business associates, judicial documents and corporate documents obtained by The Washington Post”, reported Maria Sacchetti, Faiz Siddiqui and Nick Miroff.

The reporters found that Musk “did not have the legal right to work” when he co-founded a company with his brother Kimbal and attracted investments that was later called Zip2. Kimbal Musk has long been open about their lack of legal status, even explaining in a video interview that he lied when he crossed the US-Canadian border so he could attend a business meeting in Silicon Valley. Immigration lawyer Ira Kurzban said: “That is fraud of entry.” He noted that Elon Musk’s brother could have been permanently barred from the United States. Instead, he became CEO of Musk’s first company.

“(Elon) Musk arrived in Palo Alto in 1995 for a graduate degree program at Stanford University, but never enrolled in any courses, instead working on his startup,” the statement said. Washingtonpost. That means Musk has committed at least two immigration violations. First, by not taking courses, he violated his student status. Second, he was not authorized to work legally in the United States.

Musk couldn’t continue running a company that accepts venture capital without being legally in the United States and having the right to work. According to the WashingtonpostMusk was out of state for more than a year: “One who joined Zip2’s human resources department in 1997 remembers processing work visas for the Musks and other family members in a category available to Canadians under the North American Free Trade Agreement. ”

International students are often not allowed to stay in America

Elon Musk’s story tells us a lot about the US immigration system. First of all, it’s not surprising that Elon Musk discovered he couldn’t stop being an international student and just get to work. Although international students can work on optional practical training today, this does not guarantee that they will be able to work in the United States after the end of the OPT.

Second, international students typically must obtain H-1B status in order to work long-term. In 1997, employers reached the annual limit of H-1B petitions and have done so every year since 2004. As a result, the U.S. Citizenship and Immigration Services uses an H-1B lottery. In recent years, USCIS has selected only about one in four applicants or registrants. The annual H-1B limit is 65,000, plus a 20,000 exemption for associate degree holders from US universities, which amounts to only about 0.05% of the US workforce.

Third, the annual limit for employment-based green cards is also low and, combined with a per-country limit, could mean that individuals from India may have to wait decades for permanent residency.

There is no immigration visa for entrepreneurs

In a 2021 interview, Kimbal Musk said he and Elon would have complied with the law if feasible. “I tried to get a visa, but there’s just no visa you can get to start a startup,” Kimbal said. “I was definitely illegal.”

Kimbal Musk is right when he says there is no visa for immigrant entrepreneurs under US law. Congress could have created one in 2022 as part of the CHIPS and Science Act. The Democratic majority in the House of Representatives has passed a measure that would allow individuals to obtain permanent residency if they achieve specific startup benchmarks, including raising venture capital. However, Senator Charles Grassley (R-IA) blocked the provision from becoming law in a conference committee. Grassley also prevented the bill from including an exemption from annual green card limits for foreigners with a Ph.D. in the field of science and technology and those with a master’s degree ‘in a critical industry’.

According to an analysis by the National Foundation for American Policy, 55% of US billion-dollar startups have at least one immigrant founder. Another NFAP survey found that immigrants founded or co-founded nearly two-thirds (65% or 28 of 43) of the largest AI companies in the United States. Seventy percent of full-time students in fields related to artificial intelligence are international students.

Donald Trump is unlikely to liberalize business immigration

An analysis of Trump administration policies concluded that while Donald Trump was president, his administration did not take or propose any measures to increase the entry of highly skilled foreigners or immigrants into the United States.

A court blocked Trump officials from tightening “unlawful presence” policies for international students outside immigration status. Trump’s Department of Labor has twice proposed rules aimed at pricing H-1B visa holders and employment-based immigrants out of the U.S. labor market. H-1B denials soared until a legal settlement forced Trump officials to end what judges called a host of unlawful practices. The National Venture Capital Association sued the Trump administration after it refused to implement a program allowing foreign entrepreneurs to stay in America.

According to Fortune magazine Elon Musk has given at least $132 million in political donations, mainly aimed at electing Donald Trump. Musk may be disappointed if he expects Trump to make it easier for immigrants with ambitions like those of a young Elon Musk to succeed in America.