Labor Department Inspector General Anthony D'Esposito told Fox Business that the Trump administration has launched its first major investigation into the displacement of American workers through abuses of H-1B and PERM visas and labor trafficking. The move comes as the Administration continues its anti-fraud initiative, spearheaded by Vice President JD Vance, who is scheduled to speak on fraud later today in Milwaukee.
Trump admin launches its first major H-1B visa fraud investigationhttps://t.co/JGkdgzJ1yt
— Karoline Leavitt (@PressSec) July 8, 2026
🚨 H-1B VISA FRAUD EXPOSED: CORPORATE AMERICA IS FIRING ITS OWN TO IMPORT CHEAPER FOREIGN LABOR AND TRUMP JUST LAUNCHED THE RECKONING
— Brigitte Gabriel (@ACTBrigitte) July 8, 2026
The H-1B program isn't "bringing in talent." It's a rigged replacement scheme, it's a deliberate gutting of the American middle class by greedy… pic.twitter.com/B8m41yz9JX
D'Esposito said dozens of subpoenas have been issued, and the Labor Department is investigating potential human trafficking cases as a result of visa fraud. "This is another example where fraud is fueling violent crime. Much of the visa and human trafficking that we see when it comes to this foreign labor is tied to cartels, is tied to transnational gangs, and this is the work that we should be doing, not only to make America safe again, but to make America more affordable again," he said.
H-1B work visas allow U.S. companies to hire skilled foreign workers for an initial three years with the possibility of another three-year extension. The visas have become points of legal and political contention after a judge struck down the Trump administration's imposed $100,000 application fee to discourage the displacement of American workers by cheap foreign labor.
D'Esposito, a former NYPD detective, said he and his team are prepared to exhaust every lead to crack down on the fraud, adding that they have whistleblowers discussing some of the most heavily involved companies, such as Cognizant Technology. About 65 percent of all H-1B visa holders are employed in the tech industry, with other dominant industries including accounting and management, higher education, and the medical industries.
"The Trump Administration's goal is to ensure Americans are not seeing their jobs taken away by foreigners or people who are gaming the system or financially benefiting from bringing these individuals into America and putting them into jobs that, quite frankly, they are not qualified to do," said D'Esposito.
The investigation marks the largest federal crackdown on H-1B visa fraud, weaving together investigations into both the displacement of American workers and the links between H-1B visas and criminal activity.