The Trump H-1B visa fraud probe has drawn attention after Cognizant was mentioned in connection with whistleblower claims. U.S. labor officials are investigating alleged H-1B and PERM abuse, labor trafficking and possible worker displacement.
The Trump administration’s H-1B visa fraud probe has drawn attention after Cognizant was mentioned while U.S. officials described a wider investigation into alleged abuse of employment-based visa programs.
The U.S. Department of Labor’s Office of Inspector General announced the investigation on Wednesday, July 8, 2026, saying it is examining alleged fraud, labor trafficking, wage kickback schemes and abuse involving H-1B and PERM filings.
The investigation may also matter for Indian professionals, visa holders and families in the United States. Here is a closer look at how Trump’s H-1B visa probe could affect NRIs.
Labor Department says probe targets visa abuse
Labor Department Inspector General Anthony D’Esposito said investigators had begun issuing dozens of subpoenas as part of the inquiry. He said whistleblowers had raised concerns involving major companies and mentioned Cognizant while discussing alleged issues connected to H-1B and PERM visa programs.
No criminal or civil charges have been announced against Cognizant in connection with the investigation. Officials have not said that the company has been found guilty of wrongdoing, making the distinction important as the probe continues.
Why H-1B and PERM are under scrutiny
The H-1B visa allows U.S. employers to hire foreign professionals in specialty occupations, while PERM is part of the labor certification process many employers use before sponsoring foreign workers for permanent residency.
The Labor Department said the investigation is focused on suspected fraudulent applications, coercive wage arrangements, worker exploitation and possible harm to American workers. The agency has also encouraged U.S. and foreign workers to report suspected fraud, benching, recruitment abuse or forced-labor concerns.
Indian tech workers and employers watching closely
The case is likely to be followed closely by Indian tech workers and U.S. employers because Indian nationals make up the largest share of H-1B beneficiaries. In fiscal year 2024, India accounted for 71% of approved H-1B beneficiaries, according to government data cited by Reuters.
The probe also comes after a separate legal setback for the administration. On Monday, June 8, 2026, a federal judge in Boston struck down Trump’s $100,000 fee on new H-1B visas, ruling that it was an unauthorized tax not approved by Congress.
The investigation could lead to more scrutiny of visa sponsorship records, wage practices and recruitment arrangements across technology, consulting and staffing firms. Its wider impact will depend on whether investigators bring formal enforcement action or use the probe to tighten compliance across the H-1B and PERM systems.
