The Trump administration has launched a major investigation into alleged fraud involving the H-1B and PERM employment visa programs, with US Labor Department Inspector General Anthony D’Esposito saying whistleblowers have raised concerns about some of the biggest users of the system.
IT services company Cognizant was named during the announcement of the probe, though officials have not accused the company of wrongdoing or announced any charges against it. The investigation is expected to examine allegations of potential misuse of employment-based visa programs as the administration expands its fraud crackdown.
D’Esposito revealed details of the investigation ahead of Vice President JD Vance’s fraud initiative event in Milwaukee.
The White House press secretary later confirmed the development on X, describing it as the Trump administration’s “first major H-1B visa fraud investigation.”
Why is the Trump administration investigating H-1B visa fraud?
The investigation is focused on following leads from whistleblowers who have raised concerns about companies operating in the H-1B and PERM visa space, according to D’Esposito.
“We have whistleblowers talking about some of the biggest companies, like Cognizant… and we are going to work side by side with the president and vice president’s fraud task force to exhaust every lead,” D’Esposito told Fox Business.
Also Read: Trump’s new immigration plan to tighten H-1B rules and shrink student work options? Explained
He said investigators had already issued dozens of summonses as part of the probe but did not provide details about the specific allegations being examined.
The H-1B program allows US employers to hire foreign professionals in specialized occupations, usually for an initial period of three years, with extensions possible. The PERM program is the labor certification process employers must complete before sponsoring foreign workers for permanent residency in the US.
Why was Cognizant named?
Cognizant was mentioned by D’Esposito while discussing the companies and sectors being examined as part of the investigation.
However, being named does not mean the company has been accused of fraud. The inspector general did not announce any charges against Cognizant or provide details of any specific allegations involving the company.
Cognizant has historically been among the major users of the H-1B program, along with other technology companies that rely on skilled foreign workers to fill specialized roles.
What did officials say about visa fraud and crime?
D’Esposito linked the investigation to the administration’s wider efforts to combat fraud and organized crime. He alleged that some cases involving foreign labor abuse and human trafficking have connections to criminal networks.
“Much of the visa and the human trafficking that we see when it comes to this foreign labor is tied to cartels, is tied to transnational gangs,” he said.
Also Read: Laid-off H-1B workers are returning to India only to be hit by brutal salary cuts
The inspector general said the investigation would involve working with the administration’s fraud task force to pursue leads related to alleged misuse of foreign labor programs.
What does the H-1B probe mean for Indian workers?
The investigation is likely to be closely watched in India, which accounts for the largest share of H-1B beneficiaries in the US.
According to US government data, Indian nationals made up around 71% of approved H-1B beneficiaries in fiscal year 2024, making them the biggest group among recipients of the popular work visa.
Thousands of Indian professionals, particularly in technology, engineering, research and healthcare sectors, use the H-1B program as a route to employment in the US. Indian IT services companies have also historically been among the largest users of the visa system.
While the probe targets alleged fraud and misuse of the program, officials have not announced any changes to existing H-1B holders’ status or indicated that legitimate visa holders will be affected.
The investigation comes weeks after a federal judge blocked the Trump administration’s proposed requirement for employers to pay a $100,000 fee for new H-1B visa applications.
