US tightens H-1B scrutiny

The H-1B visa programme could undergo major changes over the next year as the Trump administration expands a nationwide investigation into alleged foreign-labor fraud, worker exploitation and potential human trafficking. Labor Department Inspector General Anthony D’Esposito said the foreign-labor visa system could look substantially different a year from now, signalling tougher scrutiny and enforcement against companies and practices that investigators believe have abused the programme. “I think that the foreign labor visa program is going to look very different 365 days from now than it does today,” D’Esposito said in an interview posted by Benny Johnson on X.

D’Esposito said the investigation goes beyond paperwork or administrative violations, with federal authorities working to establish what he described as a broader case involving alleged abuses of the foreign-labor system. “This is not a paperwork accounting issue, that this is real,” he said, adding that investigators were “laying out our case” and using significant resources to show the American public what they believe is happening. The Labor Department’s Office of Inspector General has already taken enforcement steps as part of the probe. The agency said on September 18 that investigators had issued dozens of subpoenas and executed search warrants in multiple locations. The department also said visa applications involving IT services company Cognizant and software firm Cloudera had been suspended pending a criminal investigation. D’Esposito has separately warned of a tougher approach to the H-1B system. In a post on X, he said: “A secure border means locking every door, including the H-1B back door,” while referring to alleged “fake employers”, “sham jobs”, “visa mills” and worker exploitation.

The investigation comes alongside broader efforts by the Trump administration to tighten oversight of H-1B visas. A September 18 executive order directs the Departments of Labor, Homeland Security and State to consider whether employers seeking H-1B workers have carried out layoffs affecting similarly situated US workers. It also directs the Labor Department’s Wage and Hour Division to review previously submitted Labor Condition Applications and determine whether further action is warranted. The administration has also extended restrictions on the entry of certain H-1B workers through September 21, 2027. Under the proclamation, covered petitions for workers outside the US generally require a USD 100,000 payment, subject to specified exceptions. The White House has said the earlier restriction was followed by a 92 per cent decline in H-1B registrations from the largest US IT outsourcing firms. It has also reported a sharp fall in requests for consular processing. The figures are administration-reported measurements. D’Esposito did not announce that the H-1B programme would be abolished. His remarks instead indicate that investigations, company-level enforcement and possible policy changes are expected to continue over the coming year.