The administration of US President Donald Trump has launched its first large-scale investigation into alleged fraud involving the H-1B visa and PERM labour certification programmes, marking a significant escalation in scrutiny of employment-based immigration.

The investigation, led by the US Department of Labor's Office of Inspector General, is examining allegations of fraudulent visa applications, misuse of labour certification procedures and other potential violations linked to foreign worker recruitment.

US Labor Department Inspector General Anthony D'Esposito said investigators have already issued dozens of summons as part of the ongoing inquiry. During a television interview, he identified US-based IT services company Cognizant as one of the firms mentioned by whistleblowers. However, he emphasized that the company has not been charged with any wrongdoing, and its mention does not imply guilt.

The announcement comes ahead of Vice President JD Vance's anti-fraud initiative in Milwaukee, where the administration is expected to outline broader efforts targeting fraud, illegal immigration and organised crime.

Whistleblower Information Under Review

Speaking to Fox Business, D'Esposito said investigators had received information involving several major corporations operating in the United States.

He noted that whistleblower complaints had prompted investigators to examine whether companies or individuals misused employment-based visa programmes through false documentation or other fraudulent practices.

At the same time, he clarified that mentioning Cognizant was part of the investigative process and should not be interpreted as an allegation of misconduct.

Authorities said every lead provided by whistleblowers would be thoroughly examined before any conclusions are drawn.

Dozens of Summons Already Issued

According to investigators, federal authorities have already served dozens of summons while collecting documents and evidence related to the H-1B visa programme and the PERM labour certification system.

The H-1B visa allows US employers to recruit highly skilled foreign professionals for specialised occupations, particularly in technology, engineering, healthcare and scientific research. The visa is generally issued for three years and can be extended for a maximum of six years.

The PERM programme is a mandatory labour certification process through which employers demonstrate that qualified American workers are unavailable before sponsoring many foreign employees for permanent residency.

Officials said the probe will focus on potential misuse of these programmes, including fraudulent applications, false employment records and violations of immigration or labour regulations.

Administration Links Visa Fraud to Broader Crime

Inspector General D'Esposito argued that immigration-related fraud should also be viewed through the lens of organised crime.

He claimed certain forms of labour exploitation and human trafficking connected to foreign workers have links to transnational criminal organisations and drug cartels.

According to the administration, strengthening oversight of employment-based visa programmes is part of a wider strategy aimed at improving national security, protecting American workers and preventing abuse of immigration systems.

White House Press Secretary Karoline Leavitt also confirmed that the Trump administration has initiated a major investigation into alleged H-1B visa fraud.

Technology Sector Faces Closest Scrutiny

The technology industry remains the largest beneficiary of the H-1B visa programme, accounting for an estimated 60–70% of newly approved visas in recent years.

Apart from technology companies, engineering firms, consulting companies, healthcare organisations, universities and research institutions also rely heavily on skilled foreign professionals recruited through the programme.

Indian professionals continue to dominate H-1B approvals. According to US government data, around 71% of approved H-1B beneficiaries during fiscal year 2024 were Indian citizens, making India by far the largest source of skilled workers under the programme.

As a result, the investigation is expected to attract significant attention in India, where thousands of engineers, software developers, researchers and healthcare professionals depend on the H-1B programme for employment opportunities in the United States.

Legal Debate Continues

The investigation follows a recent federal court ruling that blocked a Trump administration proposal requiring employers to pay a USD 100,000 application fee for H-1B visas.

The court held that the executive branch lacked the authority to impose such a fee without congressional approval.

While the visa programme remains operational, the latest investigation signals a tougher enforcement approach toward alleged abuse of employment-based immigration systems. Authorities have indicated that the inquiry remains ongoing and that no conclusions regarding individual companies or organisations have been reached.