DOL Inspector General announces probe targeting abuse, labor trafficking, and displacement of American workers
Washington, D.C. — July 8, 2026
The Trump administration has launched its first major investigation into alleged fraud in the H-1B visa and PERM programs, including labor trafficking schemes and the displacement of American workers.
U.S. Department of Labor Inspector General Anthony D’Esposito revealed the probe exclusively to Fox Business on Wednesday, stating that investigators have already begun issuing dozens of subpoenas.1
The announcement comes as part of the administration’s expanding crackdown on immigration-related fraud and aligns with Vice President JD Vance’s nationwide fraud initiative event in Milwaukee.
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Key Details of the H-1B Visa Fraud Investigation
The investigation focuses on:
- Alleged abuse of H-1B and PERM visas
- Labor trafficking tied to cartels and transnational gangs
- Displacement of American workers by unqualified foreign labor
- Fraud occurring in sensitive sectors, including medical facilities and doctors’ offices
“This is another example where fraud is fueling violent crime,” D’Esposito said. “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.”
He emphasized that the fraud is not limited to low-skilled labor: “This is not just people working in factories or actual labor. These are people working in medical facilities and doctors’ offices that are actually putting people in harm’s way.”1
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U.S. Department of Labor Inspector General Anthony D’Esposito
Background on the H-1B Visa Program
The H-1B visa is a non-immigrant work visa that allows U.S. employers to temporarily hire foreign workers in specialty occupations requiring specialized knowledge and at least a bachelor’s degree (or equivalent). Initial approvals last up to three years and can be extended to six years.
The tech sector dominates the program, accounting for roughly 60–70% of new H-1B applications in recent years. Other major users include consulting, engineering, healthcare, and higher education. Top destination states include California, New York, and Illinois.
Critics have long argued that the program is abused through outsourcing firms, wage suppression, and the replacement of American workers — issues the Trump administration has targeted since returning to office.
Broader Crackdown Context
This new investigation builds on earlier efforts. The Department of Labor previously launched Project Firewall, which initiated nearly 200 investigations into H-1B visa fraud and labor trafficking abuses to prioritize American jobs.5
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The move also follows a federal judge’s decision last month to strike down the administration’s proposed $100,000 H-1B employer fee, which aimed to deter abuse and protect domestic workers.
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President Donald Trump has made protecting American workers a central priority of his administration.
Why This Matters for American Workers
Supporters of the investigation say it addresses long-standing concerns that the H-1B program has been exploited to import cheaper foreign labor, particularly in tech and professional services, at the expense of U.S. citizens and legal residents.
By targeting fraud and trafficking networks, the administration aims to:
- Restore fairness in the labor market
- Reduce incentives for companies to bypass American talent
- Disrupt criminal enterprises profiting from visa abuse
The probe signals a more aggressive enforcement posture on employment-based immigration violations.
What’s Next?
Investigators are actively issuing subpoenas as part of this expanding anti-fraud campaign. No specific companies or individuals have been publicly named in the initial announcement, but the scope appears broad.
The Trump administration continues to emphasize “America First” policies that prioritize U.S. workers in hiring, wages, and opportunity.
For the latest updates on this developing story, follow official statements from the Department of Labor and White House.
Keywords: Trump H-1B visa fraud investigation, H-1B visa abuse, American workers displacement, DOL Inspector General Anthony D’Esposito, labor trafficking H-1B, PERM visa fraud, Trump administration immigration enforcement.
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