Trump admin. launches first major federal probe into systemic fraud, labor trafficking and abuse within H-1B and PERM visa programs

OAN Staff Brooke Mallory
5:51 PM – Wednesday, July 8, 2026

The Trump administration has launched its first major federal investigation into systemic fraud, labor trafficking and abuse within the H-1B and PERM visa programs.

According to the U.S. government, the PERM (Program Electronic Review Management) program is the “first step for many employers to sponsor foreign workers for an employment-based green card, typically EB-2 or EB-3. It requires the sponsoring U.S. employer to test the labor market and prove to the Department of Labor that there are no qualified, willing, and available U.S. workers for the job.”

The H-1B program is a “nonimmigrant visa category that allows U.S. employers to temporarily employ foreign professionals in highly specialized ‘specialty occupations’ that require at least a bachelor’s degree.”

Formally announced by the Department of Labor (DOL) Office of Inspector General, this multi-agency enforcement action signals an escalation in the White House’s broader campaign to overhaul employment-based immigration.

According to federal officials, investigators have already moved past preliminary inquiries and begun serving dozens of subpoenas to companies and intermediaries across the United States.

The nationwide probe targets employers who use the temporary worker programs to drive down wages and displace qualified domestic talent, as well as illicit entities exploiting the immigration pipeline for financial gain.

Labor Department Inspector General Anthony D’Esposito linked the administrative fraud to broader security concerns during a recent national broadcast.

Speaking to Fox News, D’Esposito declared, “This is another example where fraud is fueling violent crime. 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.”

Federal officials emphasized that the current dragnet spans beyond typical corporate office environments and tech sector hubs, focusing on public health and safety vulnerabilities. The scope of the investigation incorporates specialized sectors where unqualified workers are purportedly being placed into specialized roles through fraudulent documentation.

Emphasizing the physical risks involved in these schemes, D’Esposito continued, “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.”

“The Trump administration’s goal is to make sure hardworking Americans are not seeing their jobs taken away by foreigners or people who are gaming the system or financially benefiting from bringing these individuals into America and putting them into jobs that, quite frankly, they are not qualified to do,” he continued.

Meanwhile, the operation builds upon the Trump administration’s broader framework to insulate the domestic labor market from foreign competition and systemic exploitation. Beyond tracking down visual indicators of fraud, such as wage disparities, non-payment of certified salaries, and localized labor trafficking, the ultimate mandate remains the preservation of domestic employment pipelines.