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H-1B Visa Faces Fresh Heat Over Fraud and Job Loss Claims

H-1B Visa Faces Fresh Heat Over Fraud and Job Loss Claims

The H-1B visa programme is facing renewed political scrutiny in the United States amid allegations of fraud, worker exploitation and job losses.

Republican Congressman Riley Moore has sharply attacked the employment-based visa system, calling it an “absolute disaster” for American workers.

At the same time, a senior official from the US Department of Labor’s Office of Inspector General has alleged that some visa fraud cases are linked to criminal enterprises and wage kickbacks.

The comments come as anti-immigration activists increasingly blame H-1B hiring for technology-sector layoffs. Indian professionals and executives have also become targets of online campaigns accusing companies of replacing American workers with cheaper foreign labour.

Moore argued that the H-1B programme has expanded far beyond its original purpose of filling specialised skill shortages.

He said many H-1B positions are in fields for which American students attend college or trade school, and claimed that legal employment-based immigration may be more damaging than illegal immigration in some sectors.

Moore cited Microsoft’s recent Xbox restructuring as an example, alleging that the company laid off thousands of US workers while continuing to seek H-1B employees from India.

However, Microsoft has not said that its layoffs were linked to H-1B hiring. Like many large technology firms, it continues to sponsor foreign workers for specialised engineering and software roles while restructuring other parts of its business.

Moore also criticised the Optional Practical Training programme, particularly STEM OPT, which allows international graduates to work in the US after completing their studies.

He argued that foreign graduates were being trained and hired while American students were being left behind.

Separately, Labor Department Inspector General Anthony D’Esposito said his office was investigating alleged misuse of the H-1B and PERM programmes.

He claimed that some foreign workers were being forced to return portions of their wages to criminal organisations.

D’Esposito said subpoenas had already been issued as part of a wider investigation being conducted with support from a White House task force.

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The H-1B programme allows US companies to hire foreign professionals in speciality occupations requiring advanced knowledge. Indian nationals receive the majority of approved H-1B visas.

Supporters say the programme helps companies fill skill shortages and supports innovation. Critics argue that some employers misuse it to reduce labour costs or replace American workers.

The latest statements have added to growing Republican pressure on employment-based immigration as the Trump administration tightens oversight of legal visa programmes.

However, the Labor Department has not yet released any findings from the investigation, and no public evidence has been presented to support broader claims that H-1B wages are systematically funding criminal enterprises.

Immigration advocates also warn that individual fraud cases should not be used to portray all H-1B workers negatively, as the vast majority follow US immigration and labour laws.

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