H-1B Visa fraud probe
Trump admin launches major H-1B visa fraud investigation into worker displacement (For illustration purposes only) Natalia Vaitkevich: Pexels

The Trump administration has launched its first major H-1B visa fraud probe into alleged abuse of the programme and the displacement of American workers. Vice President JD Vance announced the move on 8 July in Milwaukee, pointing to big corporations and fraudsters who have allegedly used the visas to undercut wages.

The Department of Labor's Inspector General Anthony D'Esposito is leading the effort, which covers H-1B visas for specialty occupations requiring advanced skills and PERM certifications for permanent residency applications. H-1B visas permit employers to hire foreign professionals for roles needing at least a bachelor's degree or equivalent.

Scope Of The H-1B Visa Fraud Probe

Investigators have already begun issuing dozens of subpoenas and are actively tracking multiple leads from whistle-blowers. The wide-ranging probe examines fraudulent visa applications, cases where workers are not paid the wages certified on labour condition applications, and situations in which employees perform duties different from those specified in their petitions.

Coercive wage-kickback schemes that exploit foreign workers have also come under scrutiny, alongside the hiring of unqualified staff in areas such as healthcare. Officials have highlighted connections in certain instances to human trafficking, with ties to cartels and transnational gangs described as fuelling violent crime.

D'Esposito has described the effort as one of the administration's most aggressive to date against foreign labour fraud, with the Office of the Inspector General vowing to put criminals in cuffs where evidence warrants. These activities are said to undermine the integrity of visa programmes designed to address genuine labour shortages, not to enrich bad actors at the expense of American employment.

Alleged Worker Displacement And Programme Abuse

The inquiry centres on allegations that some employers have exploited the H-1B system to bring in lower-wage foreign labour, thereby displacing American workers and suppressing wages in skilled sectors. Roughly 70 per cent of new H-1B applications relate to the technology industry, with high volumes in California, New York and Illinois.

Vance has underlined the principle that American jobs ought to go to American workers and not foreign fraudsters. He stated: 'American jobs ought to go to American workers and not foreign fraudsters, and the Department of Labour is fighting back against it.'

Whistle-blower reports have raised concerns about practices at large companies, including chatter regarding Cognizant in connection with PERM and H-1B visas, though no specific charges have been laid against any firm so far.

The administration maintains that such abuses harm opportunities for US citizens amid ongoing economic pressures. Indian nationals have accounted for a substantial share of approvals in recent years.

Government Response And Ongoing Efforts

The H-1B visa fraud probe forms a key part of the Task Force to Eliminate Fraud established by President Trump and Vice President Vance. A hotline has been established for the public to report suspected cases of exploitation. D'Esposito has stated that investigators will track down every lead and work to put American workers first.

This development follows a notable decline in H-1B cap registrations for fiscal year 2026, with 343,981 eligible submissions compared with 470,342 in the prior year (FY2025).

Additional subpoenas and enforcement measures are expected in the coming weeks as authorities seek to strengthen oversight of the employment-based immigration system and protect domestic job markets.

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