Vice President JD Vance and the Department of Labor's watchdog have launched an investigation into the exploitation of worker visas by foreigners in the United States. The probe targets fraudsters who allegedly use the visa system to undermine American workers and industries.
At an event in Milwaukee, Vance stated that labor officials have issued numerous subpoenas as part of the investigation. The goal, he said, is to ensure "American jobs ... go to American workers and not foreign fraudsters."
Labor Department Inspector General Anthony D’Esposito indicated that recipients of worker visas have been implicated in defrauding the medical industry and other sectors of hundreds of millions of dollars. He also noted that some operations involved forced labor and human trafficking. The DOL's Office of Inspector General has reportedly uncovered schemes where employers and labor brokers submitted fraudulent applications, exploited foreign workers through wage-kickback arrangements, and depressed wages by bringing in below-market labor.
D’Esposito also informed Fox Business that the investigation will examine both H-1B visa holders, who are alleged to be displacing Americans, and individuals seeking employment-based green cards through the PERM (Program Electronic Review Management) process.
According to D’Esposito, the visa fraud is linked to cartels and transnational gangs, contributing to violent crime. He specified that the exploitation extends beyond traditional labor to include medical facilities and doctor's offices, potentially endangering patients.
Vance characterized the H-1B visa program as originally intended for highly skilled individuals like scientists and doctors. However, he asserted that corporations and foreign fraudsters are increasingly using the program to lower wages for American workers. "This is a visa program that was set up to ensure that if you were a brilliant technology person or a brilliant scientist or a brilliant doctor, you could come to the United States and get access to this visa program," Vance said. "But you know, what’s happening way too much is that big corporations and fraudsters overseas are using this program to undercut the wages of American workers."
The H-1B visa allows companies to hire foreign workers with specialized skills when U.S. workers are unavailable. PERM certifications are required for foreigners seeking employment-based green cards.
Data from the Pew Research Center indicates that a significant majority of H-1B workers, 73%, come from India. More than half hold master's degrees, and most are employed in programming, data communications, or technical support roles. These visas typically allow workers to stay for up to three years and can be renewed once, with PERMs potentially allowing longer stays tied to employment.
Top states for H-1B petitions include California, New York, Illinois, Texas, and Washington. In 2022, under the Biden administration, approved H-1B applications reached a high of 442,425. A previous executive action by President Trump to impose a $100,000 annual fee on H-1B applicants was struck down by a federal judge in June. Additionally, starting in May 2025, non-permanent residents, including H-1B visa holders, will be ineligible for FHA-insured mortgages.
According to Department of Homeland Security assessments, up to 21% of H-1B petitions have been found to be fraudulent.