Trump Administration Unveils Crackdown on H-1B Visa Abuse, Launches Over 100 Investigations

The Trump administration is cracking down on abuses within the H-1B visa program, revealing more than 175 active investigations and pledging to deploy every available tool to protect American jobs. The Department of Labor (DOL) launched Project Firewall in September with the express purpose of ensuring that U.S. employers prioritize qualified American workers and don’t use the visa system to undercut wages.

Labor Secretary Lori Chavez-DeRemer is personally certifying investigations into suspected violations — a first in DOL history.

“The Labor Department is using every resource currently at our disposal to put a stop to H-1B visa abuse,” Chavez-DeRemer said in a statement to Fox News Digital. “Under the leadership of President Trump, we will continue to invest in our workforce, ensuring high-skilled job opportunities go to American workers first.”

This announcement came on the same day President Trump signed a proclamation instituting a $100,000 one-time fee on all new H-1B visa petitions. According to the White House, the fee is designed to discourage companies from exploiting the system with mass filings and cheap labor while encouraging businesses with legitimate high-skill needs to participate fairly.

Major Findings from Investigations

While the DOL did not disclose full details of the ongoing probes, officials confirmed that the cases span more than $15 million in alleged unpaid wages. Key findings include:

• Underpayment of Skilled Workers: Foreign workers with advanced degrees were often paid below the wages listed in job descriptions, which lowers industry pay standards across the board and forces American workers to accept lower pay to compete.

• False and Misleading Labor Condition Applications (LCAs): Investigators found that many LCAs — the official documents employers file to sponsor H-1B workers — contained fake worksites, misleading job descriptions, or wage details that didn’t match reality.

• Lack of Notification of Termination: Some employers failed to notify U.S. Citizenship and Immigration Services when foreign workers were let go, with delays stretching weeks or months — a violation that undermines the legal integrity of the program.

• ‘Benching’ Practices: Some companies engaged in “benching,” withholding pay from H-1B employees during inactive periods between projects, which is illegal under labor regulations.

• Copy-Paste Postings and Lack of Notice: Other employers sloppily reused job postings that had no relation to the actual position, violating the requirement that American workers be notified first and given the opportunity to apply.

These investigations are part of a broader Trump administration effort to reset U.S. immigration and labor policy to favor American citizens and high-wage employment.

New Visa Fee and Rule Reforms

The administration’s $100,000 H-1B fee is aimed at preventing companies — particularly large tech firms — from flooding the system with mass applications to drive down wages.

“The whole idea is no more will these Big Tech companies or other big companies train foreign workers. They have to pay the government $100,000, then they have to pay the employee, so it’s just not [economical],” Commerce Secretary Howard Lutnick said.

The fee will take effect in the next annual lottery cycle and is only applicable to new visa applications, not renewals.

Earlier this year, the Trump administration also proposed a rule change favoring H-1B petitions that offer higher salaries or require more advanced skills, marking a shift toward rewarding merit-based immigration while protecting middle-class wages.

Criticism of the H-1B Program

While H-1B visas allow companies to hire foreign workers in “specialty occupations,” critics say the system is often abused by large corporations to sideline American talent. One reason is that foreign workers are directly tied to their employer for visa sponsorship — meaning they can’t freely change jobs without risking deportation.

Justin Vianello, CEO of Skillstorm, called the current system a “three-headed monster” that needs urgent reform to avoid leaving American workers behind.

The administration’s push to restore integrity to the system appears to be resonating with workers frustrated by wage stagnation and job displacement. The Department of Labor says it will continue to aggressively pursue fraud and abuse while backing policies that ensure Americans are first in line for high-skill jobs.