US launches fresh H-1B visa fraud probe; Cognizant among IT firms under scanner: What it means for India | World

The United States has launched an investigation into alleged fraud involving H-1B and PERM work visas by multiple companies, with a senior federal official naming IT services major Cognizant among the companies under scrutiny. US Labor Department Inspector General Anthony D’Esposito said investigators have already begun to issue dozens of subpoenas in relation to the fraud investigation.

“We’ve already started to issue dozens of subpoenas; we are going to make sure that we track down every lead. We have whistleblowers talking about some of the biggest companies like Cognizant, who have been sort of, you know, in the chatter of issues with PERM and H-1B visas,” D’Esposito told Fox Business on Wednesday.

The action has been taken under the Task Force to Eliminate Fraud led by Vice President JD Vance.

American jobs ought to go to American workers: JD Vance 

Meanwhile, Vance said the Trump administration would ensure that the H-1B visa system is not used in a way that hurts American workers. Speaking in Milwaukee, Wisconsin, Vance said the latest action was part of a wider crackdown on visa fraud, aimed at protecting taxpayer money and preventing the misuse of employment-based immigration programmes such as H-1B and PERM.

“We have a programme called the H-1B visa programme. This goes to show how broad-based the fraud task force is. We’re fighting for your taxpayer money, but we’re also making sure that fraudsters don’t take advantage of these visa programmes,” Vance said.

Explaining the purpose of the H-1B programme, Vance said it was created to allow highly skilled professionals, including scientists, doctors and technology experts, to work in the United States.

“Now why does this programme exist? This is a visa programme 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 programme,” he said.

However, Vance alleged that large corporations and overseas entities were misusing the programme to reduce wages for American workers. “But you know what’s happening way too much is that big corporations and fraudsters overseas are using this programme to undercut the wages of American workers,” he said.

“So you know what we’re doing in the Trump administration? We’re saying, ‘No more. If you are trying to take advantage of that visa programme, you are not allowed in to the United States of America,” Vance added.

Vance said the Federal Department of Labour has initiated “dozens of subpoenas and investigations” into entities accused of attempting to exploit the H-1B visa system. “American jobs ought to go to American workers and not foreign fraudsters, and the Department of Labour is fighting back against it!” he said.

The H-1B visa programme allows US employers to hire highly skilled foreign professionals on a temporary basis for specialised jobs that typically require at least a bachelor’s degree or equivalent expertise. Employers seeking to sponsor H-1B workers must file applications certified by the US Department of Labor, declaring that hiring foreign workers will not adversely affect the wages or working conditions of similarly employed American workers.

What does it mean for India?

For India, the development is significant as the H-1B visa programme serves as a key pathway for Indian professionals seeking employment opportunities in the United States, particularly in sectors such as technology, engineering, healthcare and finance. Due to India’s large pool of skilled workers in specialised fields, Indian nationals account for a significant share of H-1B visa recipients each year, making changes to the programme a key issue for New Delhi.

Indian IT services companies are among the largest users of the US work-visa channel for onsite delivery. If the probe expands beyond one or two firms, companies could face increased document checks related to H-1B and PERM filings, audits, site visits, and scrutiny of client contracts, salaries, and job roles.

H-1B approvals may not be stop, but the process could become slower and more stressful. This means longer timelines for both new applicants and renewals, more paperwork, and greater uncertainty, especially in consulting or third-party placement models.

The H-1B system is a central pillar of the US skilled-worker immigration framework. Under current rules, the US Congress has capped the number of H-1B visas at 65,000 annually for most private employers, with an additional 20,000 visas reserved for applicants holding advanced degrees from US institutions.

According to immigration advocacy group FWD.us, around 730,000 H-1B visa holders currently live in the United States, along with nearly 550,000 dependents, including spouses and children.

Also Read: H-1B visa fee row: Trump slams court ruling; why this decision matters beyond America?

Also Read: US judge scraps Trump’s $100,000 fee on H-1B visas: How will this move benefit Indian professionals?