US Launches Major Investigation into H-1B and PERM Visa Fraud

The United States Department of Labor launched a sweeping investigation on July 8, 2026, into alleged fraud within the H-1B and Program Electronic Review Management (PERM) visa systems. Led by Inspector General Anthony P. D'Esposito, the probe focuses on fraudulent applications, coercive wage-kickback schemes, and the displacement of American workers through below-market wages. D'Esposito stated that the investigation is one of the most aggressive actions ever taken by an Inspector General against foreign labor fraud and has already resulted in dozens of subpoenas.

Vice President J.D. Vance, leading the Task Force to Eliminate Fraud, announced the crackdown during an event in Milwaukee, Wisconsin. He framed the initiative as a effort to ensure that American jobs go to American workers rather than foreign fraudsters. The administration has linked these visa abuses to human trafficking and transnational gangs, asserting that such fraud fuels violent crime. While the probe targets foreign entities, D'Esposito noted that whistleblowers have raised concerns regarding large companies, specifically naming the IT services firm Cognizant.

The investigation extends across medical facilities, factories, ports, and nursing homes, and also examines the STEM Optional Practical Training (OPT) program. This crackdown follows a federal court ruling that overturned a Trump administration requirement for employers to pay a $100,000 H-1B visa fee. Representative Riley Moore criticized the H-1B program as a disaster, alleging that companies like Microsoft use such visas to replace U.S. employees.