The administration of US President Donald Trump has launched its first major federal investigation into alleged fraud involving the H-1B and PERM work visa programmes, with officials confirming that Indian IT services company Cognizant is among the firms under scrutiny. The probe is being led by the US Department of Labor’s Office of the Inspector General (OIG) as part of a broader effort to crack down on abuse of employment based visa programmes.
According to Labor Department Inspector General Anthony D’Esposito, investigators have already issued dozens of subpoenas after receiving whistleblower complaints and are pursuing multiple leads involving alleged misuse of the H-1B and PERM visa systems. Officials said the investigation is examining whether employers or labor brokers submitted fraudulent applications, exploited foreign workers or used the visa programmes to undercut American workers.
During a public briefing, D’Esposito identified Cognizant as one of the companies mentioned by whistleblowers. However, authorities have not accused the company of wrongdoing and no formal charges have been filed. The investigation remains at an early stage.
The initiative forms part of the administration’s “American Jobs First” agenda and is supported by Vice President JD Vance, who has emphasized stricter enforcement against visa fraud and labor exploitation. Officials said the goal is to ensure that work visa programmes address genuine labor shortages rather than being misused for unfair hiring practices or worker exploitation.
The H-1B visa programme allows US employers to hire highly skilled foreign professionals in specialty occupations such as information technology, engineering, healthcare, and finance. The PERM programme enables employers to sponsor foreign workers for permanent residency after demonstrating that qualified US workers are unavailable for the position.
The investigation is expected to examine compliance with immigration and labor laws across multiple employers. Federal authorities said additional subpoenas and enforcement actions could follow as the probe progresses.
