Trump administration starts first major investigation into H-1B visa fraud, Cognizant’s name comes up

New Delhi: The Donald Trump administration has launched its largest-ever crackdown on H-1B and PERM work visa fraud. US Labor Department Inspector General Anthony D’Esposito said investigators had already issued dozens of subpoenas. During this time he also took the name of IT company Cognizant.

What is the whole matter?   

The H-1B visa is a non-immigrant work permit. US companies hire foreign professionals with special skills through this. This is usually available for 3 years and can be extended up to 6 years. PERM is a labor certification process that companies must complete before they can sponsor permanent residency. D’Esposito told FOX Business that whistleblowers have provided information about some big companies like Cognizant.

He said, "We will work with the President and the Vice President’s Fraud Task Force to investigate every lead." However, he did not make any formal allegations against Cognizant. The announcement came ahead of an event by Vice President J.D. Vance in Milwaukee, where the administration will tout its campaign against fraud and organized crime.

Visa fraud linked to organized crime   

D’Esposito said this is not just a matter of breaking immigration rules. According to him, exploitation of foreign labor and human trafficking is now being linked to cartels and international gangs.

He said, "Much of the visa and human trafficking we see in foreign labor cases is linked to cartels and transnational criminal organizations. This fraud is also fueling violent crime." The White House Press Secretary also confirmed this on X and wrote that the Trump administration has launched the first major investigation into H-1B visa fraud.

Impact on tech industry and India   

The technology sector is the largest user of H-1B. In the last years, the share of tech companies in new applications has been 60 to 70 percent. Apart from this, consulting firms, engineering, healthcare and universities also use this visa.

This investigation is especially important for India. According to government data for FY 2024, about 71 percent of H-1B visa recipients were Indians. That means Indian citizens are the largest group of H-1B holders in America. Thousands of Indian engineers, software developers and AI professionals work in the US through this visa. Indian IT companies have also been big users of this program.

However, last month a federal judge struck down the administration’s rule that required a $100,000 fee on H-1B applications. The court had said that these fees cannot be imposed without the approval of Congress.