The Trump administration has launched its first major investigation into alleged fraud involving H-1B visas, PERM labor certification applications, labor trafficking, and the displacement of American workers, according to Labor Department Inspector General Anthony D’Esposito.
Speaking exclusively on FOX Business’ Mornings with Maria on Wednesday, D’Esposito said the probe marks a significant expansion of the administration’s broader crackdown on fraud. The announcement came ahead of Vice President JD Vance’s anti-fraud initiative event in Milwaukee later that day.
“This is another example where fraud is fueling violent crime,” he stated. “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, and this is the work that we should be doing, not only to make America safe again, but to make America more affordable again.”
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D’Esposito said the investigation is already underway, with investigators having issued dozens of subpoenas.
The H-1B program allows U.S. employers to hire foreign professionals in specialty occupations that typically require specialized knowledge and at least a bachelor’s degree. The visa is initially valid for up to three years and can generally be extended to a maximum of six years.
Describing the scope of the investigation, D’Esposito alleged that the suspected fraud extends beyond traditional labor jobs and into critical industries.
“This is not just people working in factories or actual labor,” D’Esposito said referring to the individuals carrying out the fraud. “These are people working in medical facilities and doctors’ offices that are actually putting people in harm’s way.”
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The technology sector is the largest user of H-1B visas, accounting for an estimated 60% to 70% of new applications in recent years. Other major employers include consulting and professional services firms, engineering and manufacturing companies, healthcare and medical research organizations, and higher education institutions. According to D’Esposito, California, New York, and Illinois are among the top states with the highest number of H-1B applicants.
D’Esposito said the administration’s goal is to ensure American workers are not displaced through alleged abuse of the immigration system.
He said the Trump administration wants to make sure hardworking 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.”