Federal Investigators Launch First Major H-1B Fraud Probe & Eli Crane Says It's About Time

The H-1B visa program was created to address gaps in the American workforce by bringing in skilled foreign talent. Congressman Eli Crane (R-AZ) says it has become a tool to push American workers out of their own jobs, and a sweeping new federal investigation suggests the problems may run deeper than anyone realized.

The Labor Department's Inspector General Anthony D'Esposito announced this week that the Trump administration has launched its first significant probe into alleged abuse of H-1B and PERM visas, labor trafficking, and the displacement of American workers.

Investigators have already begun issuing dozens of subpoenas as part of the inquiry, and D'Esposito framed the investigation as part of a broader anti-fraud campaign with serious public safety implications.

"This is another example where fraud is fueling violent crime," D'Esposito said, adding that much of the visa and human trafficking tied to foreign labor is connected to cartels and transnational criminal networks.

He also raised concerns about unqualified workers entering sensitive fields. "These are people working in medical facilities and doctors' offices that are actually putting people in harm's way," he said.

The Visa Program

The H-1B visa program allows U.S. companies to hire skilled foreign workers in specialty occupations for up to six years. The tech industry accounts for roughly 60 to 70 percent of all new applications, though consulting, engineering, healthcare, and higher education are also significant users.

California, New York, and Illinois are among the top states for applicants.

Additionally, the administration's stated goal is to ensure American workers aren't losing jobs to people gaming the system, whether through fraudulent applications or employers who benefit financially from placing unqualified workers in positions they can't perform.

Crane has been sounding the alarm on this issue since April, when he introduced the End H-1B Visa Abuse Act of 2026 to pause and reform the program. "The H-1B system has morphed into a betrayal of hardworking American citizens," he wrote on X. "We can't accept the status quo."

The legal landscape around H-1B policy remains unsettled; a federal judge recently struck down a Trump administration proposal to charge employers $100,000 per application, ruling it exceeded executive authority.