Trump Administration Initiates Sweeping H-1B and PERM Visa Fraud Probe Amid Broader Anti-Fraud Push

The U.S. Department of Labor Office of Inspector General (DOL OIG), under Inspector General Anthony D’Esposito, announced on July 8, 2026, a major nationwide investigation into alleged fraud and abuse in the H-1B and PERM visa programs. The probe examines fraudulent visa applications, labor trafficking, wage kickbacks, exploitation of foreign workers, and the displacement of U.S. workers, with dozens of subpoenas already issued. It links certain schemes to transnational criminal organizations including cartels and gangs, extending scrutiny beyond traditional sectors into healthcare facilities and medical offices where unqualified workers could endanger patients. Technology firms, which historically file 60-70% of H-1B petitions, along with consulting, engineering, and education sectors, are focal points, with California, New York, and Illinois among the leading states for applications. This effort aligns with the Trump-Vance White House Task Force to Eliminate Fraud, marking an escalation in enforcement that builds on prior OIG findings of systemic vulnerabilities in foreign labor certification programs. Reports also reference potential scrutiny of major IT services firms like Cognizant. The investigation reflects a policy shift prioritizing American worker protections and program integrity, with implications for tech hiring practices, labor market dynamics, and immigration enforcement across multiple industries.