Archive · 28 Sep 2026
H-1B Visa System Faces Intensifying Trump Administration Investigation
The H-1B program lets some American companies hire skilled workers from other countries.
The Labor Department is investigating whether some employers misused this program.
Officials are looking at claims involving fake employers, sham jobs, worker exploitation, and possible human trafficking.
Investigators have issued subpoenas and searched several locations.
Some visa applications connected to Cognizant and Cloudera were suspended during a criminal investigation.
Inspector General Anthony D’Esposito said the program may be much stricter within a year.
The administration also wants officials to consider whether companies recently laid off similar American workers.
Officials say the program should not be used to replace American workers with lower-paid foreign workers.
The Labor Department’s inspector general is investigating alleged H-1B fraud, worker exploitation, human trafficking, sham jobs, and visa mills.
Inspector General Anthony D’Esposito said the foreign-labor visa system could look “very different” within 365 days and warned of civil penalties and criminal enforcement.
Investigators have issued dozens of subpoenas and executed search warrants at multiple locations, according to the Labor Department.
Visa applications involving Cognizant and Cloudera were suspended while a criminal investigation was underway.
The Trump administration is directing agencies to consider layoffs of similarly situated American workers during H-1B reviews, while Project Firewall targets alleged program abuse.
- Who
- The United States Department of Labor, Inspector General Anthony D’Esposito, the Trump administration, and federal investigators are examining employers and practices linked to the H-1B program.
- What
- A nationwide investigation is examining alleged H-1B fraud, worker exploitation, human trafficking, sham jobs, and possible replacement of American workers.
- When
- The warning was given in an interview; enforcement actions were reported on September 18, and Project Firewall was announced in September 2025.
- Where
- The investigation involves multiple locations in the United States and may pursue people and companies across national borders.
- Why
- Officials say they want to protect American workers, wages, job opportunities, and the integrity of the H-1B visa process.
Administration enforcement position
Program-scope and legal constraints
Purpose of H-1B hiring
Administration enforcement position
The Trump administration and Vice President JD Vance say H-1B visas should not be used to replace American workers with lower-wage foreign workers.
Program-scope and legal constraints
The reported executive order does not abolish the H-1B program and does not automatically bar every company that has conducted layoffs from hiring H-1B workers.
Future of the program
Administration enforcement position
Anthony D’Esposito said the system could look very different within 365 days and described investigators as building a case for accountability, including possible criminal enforcement.
Program-scope and legal constraints
One report described the remarks as signaling a possible total shutdown, but the other states that current administrative measures do not abolish the program; the administration’s measures also face lawsuits.
- Program
- The H-1B visa program allows United States companies to hire foreign workers in specialty occupations.
- Annual cap
- The standard annual limit is 65,000 new visas, plus 20,000 exemptions for people with qualifying advanced degrees from United States institutions.
- Investigative actions
- The Labor Department said investigators issued dozens of subpoenas and executed search warrants at multiple locations.
- Suspended applications
- Visa applications involving Cognizant and Cloudera were suspended pending a criminal investigation.
- Project Firewall
- Announced in September 2025, the initiative is intended to protect highly skilled American workers and hold employers accountable for H-1B abuses.
- Layoff reviews
- An executive order directs Labor, Homeland Security, and State officials to consider whether employers laid off similarly situated American workers during H-1B reviews.
- Reported registration decline
- The administration said H-1B registrations from the largest IT staffing and outsourcing firms fell from 24,946 to 2,055, a 92% decline.
