H-1B Visa Abuse Investigation: Firewall Targets 175 Firms

In a significant escalation of its immigration and labor enforcement agenda, the Donald Trump administration has launched a large-scale H-1B visa abuse investigation, targeting 175 potential cases of misuse within the visa program. The move marks a renewed push to protect American jobs and ensure fair hiring practices in the country’s technology and engineering sectors.

According to a report by Fox News, the U.S. Department of Labor (DOL) initiated Project Firewall in September following the administration’s proclamation imposing a $100,000 one-time fee on new H-1B petitions. The program is designed to uncover potential violations and crack down on companies allegedly exploiting the visa system to replace American workers with lower-paid foreign talent.

H-1B Visa: A New Era of Oversight

U.S. Labor Secretary Lori Chavez-DeRemer confirmed that the department has mobilized all available resources to stop H-1B visa abuse. “For the first time, I am personally certifying investigations into suspected violations to better protect American jobs,” she stated, emphasizing the administration’s commitment to safeguarding opportunities for U.S. citizens.

In a post on social media platform X, Chavez-DeRemer reinforced the department’s stance:

“Under the leadership of @POTUS, we’ll continue to invest in our workforce and ensure high-skilled job opportunities go to American workers FIRST!”

While the Labor Department did not disclose specific details about the 175 active investigations, officials indicated that Project Firewall represents one of the most aggressive enforcement efforts in the history of the H-1B program.

The $100,000 Fee Sparks Controversy

On September 19, the Trump administration announced a sweeping reform—imposing a $100,000 fee (approximately ₹88 lakh) on new H-1B petitions filed by sponsoring companies. The proclamation, titled “Restriction on Entry of Certain Nonimmigrant Workers,” aimed to discourage excessive reliance on foreign labor.

The U.S. Citizenship and Immigration Services (USCIS) later clarified that the new fee would not apply to workers seeking an extension of stay or change of status within the United States. However, the rule quickly faced legal challenges from unions, tech employers, and religious organizations in a federal court in California, arguing that the steep fee unfairly burdens businesses and deters global talent.

Changing Demographics of the H-1B Program

The White House noted that IT workers now comprise over 65% of H-1B visa recipients, up from 32% in Fiscal Year 2003. Many of the top H-1B employers are large IT outsourcing companies, several of which are based in India.

According to USCIS, Indians account for nearly 71% of all approved H-1B applications in recent years—a figure that underscores India’s dominance in the U.S. skilled migration landscape.

Despite concerns about the fee hike, Warren Harris, CEO and Managing Director of Tata Technologies, told PTI that the change has minimal short-term impact. “We are not an India-out company. We are very much a global company, with the majority of our employees being nationals of their respective countries,” he said.

Labor Department’s Campaign Against H-1B Misuse

As part of the administration’s broader messaging, the Department of Labor recently launched a new digital ad campaign condemning companies accused of exploiting the H-1B system. The video featured claims that “the American Dream” has been “stolen” from U.S. workers due to rampant visa misuse.

The campaign directly referenced India as the largest beneficiary of the visa program, alleging that thousands of young Americans have lost job opportunities to foreign replacements. “Under the President of the United States and Secretary Lori Chavez-DeRemer’s leadership, we’re holding companies accountable for their abuse and recapturing the American Dream for the American people,” the department said in a post.