Thursday, July 9, 2026

Trump administration launches investigation into alleged H-1B visa fraud, labour trafficking

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The Trump administration has launched what it calls its first major probe into alleged fraud involving H-1B and PERM visa programmes, labour trafficking and the displacement of US workers, said a senior official on Wednesday.US Department of Labor Inspector General Anthony D’Esposito said the investigation forms part of the administration’s wider anti-fraud efforts ahead of an event on fraud initiatives to be attended by Vice President JD Vance in Milwaukee later in the day.

“This is another example where fraud is fueling violent crime,” he told Fox Business. “Much of the visa and the human trafficking that we see when it comes to this foreign labor is tied to cartels, is tied to transnational gangs.”
He added investigators had already issued dozens of subpoenas as part of the inquiry.D’Esposito further alleged that fraud linked to foreign labour programmes was connected to human trafficking networks and organised crime. He also alleged that suspected fraud extended beyond manual labour jobs to workers employed in healthcare settings, including medical facilities and doctors’ offices.

H-1B programme

The H-1B visa is a non-immigrant work visa that allows US employers to hire foreign workers in specialised occupations for an initial period of three years, with the possibility of extending it to six years.D’Esposito told Fox Business that the technology sector accounts for around 60% to 70% of new H-1B visa applications in recent years. Other sectors making use of the programme include consulting and professional services, engineering and manufacturing, healthcare and medical research, and higher education.

He added that California, New York and Illinois are among the leading states for H-1B visa applicants.

The administration has not yet released further details about the scope of the investigation or identified any companies or individuals under scrutiny.

The latest investigation comes at a time when Indian IT companies have already been reducing their reliance on the H-1B programme. Apart from Infosys, which recorded a 12% increase in applications, most large Indian IT firms sharply reduced H-1B filings in 2026 compared with the previous year. TCS saw applications fall 53%, HCLTech 47%, Wipro 62%, Tech Mahindra 59% and Cognizant 16%.

The decline has been driven by increased hiring of local workers in the US, expansion of nearshore centres and greater use of offshore delivery from India. The policy environment has also become more restrictive, with a $100,000 fee for new H-1B petitions introduced from September 2025 and a wage-weighted lottery system favouring higher-paid applicants.

In May, the Trump administration also directed many H-1B visa holders seeking permanent residency to complete the green card process from their home countries, prompting concern among workers, particularly Indians facing long waiting periods.

Two days later, US Citizenship and Immigration Services clarified that applicants whose cases provide an economic benefit or serve the national interest would likely be able to continue their existing immigration process, although uncertainty remains.

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