A sweeping federal investigation is now underway targeting fraud within the H-1B visa system, marking the first major crackdown of its kind under the Trump administration.
Officials say the inquiry centers on foreign labor schemes, abuse of visa programs, human trafficking tied to labor, and cases where American employees were reportedly pushed out of their jobs in favor of foreign hires.
News of the probe broke shortly before Vice President JD Vance took the stage in Milwaukee for an event focused on rooting out fraud.
The announcement fits into a wider pattern of enforcement actions the administration has rolled out against benefit fraud, immigration violations, and unlawful entry into the country.
Anthony D’Esposito, who serves as Inspector General for the Department of Labor, disclosed Wednesday that his office has already sent out dozens of subpoenas since the investigation began.
Speaking with Fox Business, D’Esposito drew a direct line between the alleged fraud and dangerous criminal activity. “This is another example where fraud is fueling violent crime,” he said.
He didn’t stop there, alleging that organized crime groups are deeply embedded in the scheme.
“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.”
Tech companies represent the largest share of H-1B visa demand, accounting for somewhere between 60% and 70% of all new applications filed.
Still, the program stretches well beyond Silicon Valley, with heavy use across healthcare, engineering, consulting, manufacturing, and academic institutions.
Application numbers reveal a striking concentration in certain states. California, led by Governor Gavin Newsom, has produced an unusually large share of H-1B applicants, with New York and Illinois also ranking among the top states for program usage.
Two distinct government processes are under the microscope in this probe. The first is the H-1B program itself, which lets companies bring in foreign nationals for jobs requiring specialized skills.
The second is PERM labor certification, a separate track employers use to help foreign workers obtain green cards.
D’Esposito made clear that investigators aren’t just looking at blue-collar industries. “This is not just people working in factories or actual labor,” he explained.
Instead, he flagged healthcare settings as a particular danger zone. “These are people working in medical facilities and doctors’ offices that are actually putting people in harm’s way,” he said.
Sources within the Labor Department’s watchdog office indicate that specific companies and networks are already under scrutiny for allegedly gaming the visa system at the expense of qualified American applicants.
Administration officials are calling this the largest enforcement push targeting employment-based visa programs since Trump returned to office.
D’Esposito framed the mission in blunt terms, saying the administration wants to guarantee that “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 timing of the probe follows closely on the heels of a courtroom defeat for the administration.
A federal judge recently blocked a proposed $100,000 fee on H-1B visa applications, ruling that the White House overstepped its legal authority by attempting to impose the charge without sign-off from lawmakers in Congress.
So far, investigators have not released the names of any businesses or individuals connected to the fraud allegations.
The Labor Department’s inspector general has described the case as active and expanding, with more subpoenas expected as the investigation continues to unfold.
This latest action signals a hardening stance from federal regulators toward employment-based immigration pathways that have drawn scrutiny for years over concerns about wage suppression and worker displacement.
As subpoenas continue rolling out and the case remains open, further details—including the potential identification of companies under investigation—are likely to surface in the weeks ahead.
