The US Department of Labor has launched a major crackdown on fraud involving H-1B visas, issuing dozens of subpoenas as part of investigations into misuse of the program, officials confirmed August 8 [1, 2]. The probe targets abuses including improper use of H-1B visas, PERM labor certification fraud, labor trafficking, and the displacement of US workers [1].
Whistleblower complaints against large companies, such as the technology consulting firm Cognizant, helped prompt the investigations [1]. H-1B visas enable US companies to hire highly skilled foreign professionals for periods of three to six years. The program is widely used in technology, consulting, engineering, healthcare, and higher education sectors, with top visa application states including California, New York, and Illinois [1, 3, 2].
US Vice President JD Vance spoke August 9 in Milwaukee, Wisconsin to promote the crackdown, linking it to Trump-era anti-fraud policies and criticizing Democratic lawmakers for insufficient action. “The principle is simple: American jobs should go to American workers, not foreign fraudsters. The Department of Labor is fighting back,” Vance said at the 128th Air Refueling Wing [3, 2]. He added that “big corporations and fraudsters overseas are using this programme to undercut the wages of American workers. But this won't be allowed anymore” and warned firms exploiting the system “are not allowed in the US” [3].
US Department of Labor Inspector General Anthony D'Esposito described the fraud as part of scams that also fuel violent crime, stating, “We must make America safe again and affordable again” [1]. The Trump administration aims to protect American jobs by preventing wage suppression and fraud linked to visa misuse [1, 2].
Most employers are subject to an annual H-1B visa cap of 65,000, with an additional 20,000 slots for holders of advanced degrees from US institutions [3]. The Department of Labor continues to build its investigation with subpoenas issued across multiple states.
The crackdown’s next phase will proceed as the Department of Labor pursues legal actions against entities found misusing visas or engaging in related fraud.
