The Trump administration has launched a major investigation into alleged fraud involving the H-1B work visa programme, with US Vice President JD Vance warning that companies and individuals accused of misusing the system will face strict action.
Speaking during a visit to the Wisconsin Air National Guard’s 128th Air Refuelling Wing base in Milwaukee on Wednesday, Vance said the administration was stepping up efforts to protect American jobs and prevent abuse of employment-based visa programmes.
JD Vance Signals Tough Action on H-1B Abuse
Addressing the gathering, Vance said the US Department of Labour had already started issuing subpoenas and opening investigations into what he described as misuse of the H-1B visa programme.
“We have a program called the H-1B visa program. This goes to show how broad-based the fraud task force is we’re… we’re fighting for your taxpayer money, but we’re also making sure that fraudsters don’t take advantage of these visa programs,” he said.
He explained that the H-1B visa was originally created to allow highly skilled professionals such as scientists, doctors and technology experts to work legally in the United States. However, he claimed the programme had increasingly been exploited.
“But you know what’s happening way too much is that big corporations and fraudsters overseas are using this program to undercut the wages of American workers. So, you know what we’re doing in the Trump administration? We’re saying no more. If you are trying to take advantage of that visa program, you are not allowed into the United States of America,” he said.
Vance added: “Here’s a simple principle, ladies and gentlemen: American jobs ought to go to American workers and not foreign fraudsters, and the Department of Labour is fighting back against it.”
First Major Probe Into H-1B and PERM Visa Programmes
The Vice President’s remarks came after the Trump administration launched what officials described as its first major investigation into suspected fraud involving both the H-1B and PERM visa programmes.
These programmes allow US employers to recruit foreign workers for specialised positions when qualified American workers are unavailable.
The investigation is being led by the Department of Labour’s Office of the Inspector General, which has begun issuing subpoenas as part of a broader inquiry into suspected labour trafficking and abuse of foreign worker visa schemes.
Inspector General Promises Aggressive Investigation
Labour Department Inspector General Anthony D’Esposito said the inquiry would be one of the strongest actions ever taken against alleged foreign labour fraud.
“We are going to take aggressive action, which we believe is probably the most aggressive action against foreign labour fraud by an Inspector General, this administration,” he said.
D’Esposito said investigators had received whistleblower complaints pointing to “some of the biggest companies, like Cognizant”, adding that his office would “track down every lead”.
He also confirmed that investigators would “work side by side with the president and vice president’s fraud task force” throughout the investigation.
Labour Department Alleges Widespread Fraud
According to an official statement from the Department of Labour, investigators have uncovered alleged schemes in which employers and labour brokers submitted fraudulent visa applications and exploited foreign workers through coercive wage-kickback arrangements.
The department said such practices damage programmes that are meant to fill genuine labour shortages.
“These abuses undermine the integrity of Department of Labour programs designed to address genuine labour shortages – not to line the pockets of bad actors at the expense of American jobs,” the statement said.
First published on: Jul 10, 2026 08:14 AM IST
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