00:09A major new warning from Washington is putting the H-1B visa program under intense scrutiny.
00:17The message from the U.S. Labor Department's inspector general is blunt.
00:22We have handcuffs ready.
00:24But does this mean the United States is preparing to completely shut down the H-1B program?
00:32Here is what is actually happening.
00:35On September 18, 2026, Labor Department inspector general Anthony Despacito said federal investigators are pursuing allegations involving foreign labor fraud,
00:48worker exploitation, and potential human trafficking.
00:52He said investigators are building criminal cases where the evidence supports them.
00:58And, according to the Labor Department's inspector general, dozens of subpoenas have already been issued and search warrants executed.
01:07Visa applications involving Cognizant and Cloudera have also been suspended pending the criminal investigation.
01:15But there is an important distinction.
01:18The U.S. government has not announced that the H-1B program is being abolished.
01:24Instead, the administration is tightening enforcement, restricting entry in certain cases, and changing how applications are reviewed.
01:34In September 2025, the Labor Department launched Project Firewall, an enforcement initiative targeting employers suspected of misusing the H-1B
01:45system.
01:46The Department says investigations can focus on alleged displacement of U.S. workers, inadequate recruitment of American workers, misrepresentation, and
01:57other forms of H-1B abuse.
02:00And now, the pressure is increasing.
02:02On September 18, 2026, President Donald Trump signed an executive order directing federal agencies to consider whether an employer has
02:14carried out layoffs affecting similarly situated U.S. workers when reviewing H-1B petitions and related applications.
02:22The order also directs the Labor Department to review previously submitted labor condition applications for further action.
02:32At the same time, the administration extended its restrictions on the entry of certain H-1B workers until September 21,
02:412027.
02:42For covered cases involving workers outside the United States, the current proclamation requires a $100,000 payment with the H
02:54-1B petition, subject to specified exceptions.
02:57So the bigger story is not an overnight shutdown.
03:01It is a combination of criminal investigations, employer scrutiny, entry restrictions, and higher costs for certain H-1B cases.
03:12The administration says these measures are intended to prevent fraud, protect American workers, and stop employers from using foreign labor
03:21in ways that violate U.S. law.
03:23Meanwhile, the Labor Department continues to maintain lists of employers that have been found to have committed willful H-1B
03:33violations or have been debarred from the program.
03:36And that brings us back to the warning from Inspector General Despacito.
03:41He says the foreign labor visa system could look very different 365 days from now.
03:48Whether that ultimately means...
