“This is not just people working in factories or actual labor. These are people working in medical facilities and doctors’ offices that are actually putting people in harm’s way.”
The Trump administration has launched its first major investigation into alleged H-1B visa fraud, targeting schemes involving foreign labor, visa abuse, labor trafficking, and the alleged displacement of American workers. The announcement preceded Vice President JD Vance's anti-fraud initiative event in Milwaukee and follows a series of administration efforts targeting government benefit fraud, immigration fraud, and illegal immigration.
Labor Department Inspector General Anthony D'Esposito announced Wednesday that investigators have already issued dozens of subpoenas as part of the sweeping probe. "This is another example where fraud is fueling violent crime," D'Esposito told Fox. "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, and this is the work that we should be doing, not only to make America safe again, but to make America more affordable again."
The H-1B program is heavily utilized by the technology industry, which accounts for roughly 60% to 70% of new visa applications, though healthcare, engineering, consulting, manufacturing, and higher education also rely heavily on the program. Governor Gavin Newsom's administration in California has seen extraordinarily high numbers of H-1B applicants in the state, as have New York and Illinois.
The investigation will examine alleged abuse of both the H-1B visa program, which allows US employers to hire foreign workers in specialty occupations, and the PERM labor certification process, which employers use to sponsor foreign workers for permanent residency. D'Esposito warned that the alleged fraud extends well beyond low-skilled labor. "This is not just people working in factories or actual labor," he said. "These are people working in medical facilities and doctors' offices that are actually putting people in harm's way."
According to the Labor Department watchdog, investigators are focusing on employers and networks suspected of exploiting visa programs while potentially replacing qualified American workers. The announcement marks the Trump administration's most significant enforcement action yet involving employment-based visas.
D'Esposito said the administration's goal is ensuring "hardworking Americans are not seeing their jobs taken away by foreigners or people who are gaming the system or financially benefiting from bringing these individuals into America and putting them into jobs that, quite frankly, they are not qualified to do."
The investigation also follows a recent federal court ruling striking down the administration's proposed $100,000 H-1B visa fee, with a judge finding the executive branch lacked authority to impose the surcharge without congressional approval. No companies or individuals have yet been publicly identified in connection with the investigation, which remains ongoing.
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