Washington: US authorities have launched a broad investigation into alleged fraud involving the H-1B and PERM work visa programmes, with Vice President JD Vance warning that individuals exploiting the system to undercut American workers would face strict action. The announcement comes as the US Department of Labor expands its scrutiny of visa-related fraud and labour exploitation across multiple industries.

Speaking at the Wisconsin Air National Guard’s 128th Air Refuelling Wing in Milwaukee, Vance said the Department of Labor had issued dozens of subpoenas and initiated multiple investigations into alleged H-1B visa fraud.

Vance vows crackdown on visa fraud

Addressing the gathering, Vance said the administration was committed to ensuring that American workers were not disadvantaged by fraudulent use of employment visa programmes.

“American jobs ought to go to American workers and not foreign fraudsters, and the Department of Labor is fighting back against it,” Vance said.

He alleged that some large corporations and overseas fraudsters had misused the H-1B programme to suppress wages and exploit loopholes in the immigration system.

“If you are trying to take advantage of that visa programme, you are not allowed into the US,” he added.

Multiple investigations under way

According to US officials, the Department of Labor has launched multiple investigations while issuing dozens of subpoenas related to suspected abuse of the H-1B visa programme.

The investigations are part of a wider federal effort to examine allegations that some employers and labour brokers have submitted fraudulent applications, misused foreign worker programmes and violated labour laws.

Inspector General cites widespread abuse

Department of Labor Inspector General Anthony D’Esposito said investigators have uncovered alleged large-scale fraud involving both the H-1B and PERM visa programmes.

According to the Office of Inspector General, investigators have identified alleged schemes in which employers and labour brokers submitted fraudulent visa applications, coerced foreign workers into wage kickback arrangements and used below-market wages to gain an unfair competitive advantage.

D’Esposito also alleged that some of the schemes involved forced labour networks and human trafficking operations that affected the healthcare sector and other industries, causing losses worth hundreds of millions of dollars.

Claims involving major companies

During media interviews, D’Esposito said investigators had received whistleblower information involving some of the country’s largest companies.

He specifically mentioned IT services company Cognizant while discussing concerns related to permanent residency sponsorships and H-1B visas. However, no formal findings of wrongdoing against the company have been announced as part of the investigation.

The Inspector General said investigators would pursue every credible lead in coordination with the administration’s fraud task force.

Political criticism

Vance also criticised Democratic lawmakers, alleging they had failed to address fraud in government programmes.

He claimed the Trump administration had saved billions of dollars by tackling fraud but did not provide specific evidence or documentation to support the figure during his remarks.

Impact on H-1B programme

The H-1B visa programme enables US employers to hire foreign professionals in specialised occupations, particularly in science, technology, engineering and mathematics (STEM).

Indian nationals account for around 70 per cent of H-1B visa approvals in recent years, making developments related to the programme particularly significant for Indian professionals seeking employment in the United States.

The Trump administration has previously proposed changes to the programme, including increasing application costs and tightening eligibility requirements. Some of these proposals remain the subject of legal proceedings.

While the latest investigation focuses on alleged fraud by certain employers, labour brokers and other participants, US authorities have not indicated that the H-1B programme itself is being discontinued. The investigation is expected to determine whether existing laws were violated and whether further regulatory reforms are necessary.