Why US launched 175 investigations into H-1B visa abuse under ‘Project Firewall’ | Explained 

US launches at least 175 investigations targeting 'potential abuses' within H-1B visa program

The US Department of Labor (DOL) has initiated at least 175 investigations into alleged misuse of the H-1B visa programme, Fox News reported. The move comes after the Trump administration launched Project Firewall and introduced a one-time $100,000 fee on new H-1B applications, aimed at ensuring employers prioritise qualified American workers and hire foreign professionals only when necessary.

Launched in September, Project Firewall seeks to prevent companies from exploiting the visa system and to guarantee that American workers receive first preference for available positions. The H-1B visa permits US companies to hire foreign workers in specialised fields such as technology, engineering, and healthcare.

According to Fox News, Labor Secretary Lori Chavez-DeRemer is personally certifying the investigations, a power the department has never previously exercised. Speaking to Fox News Digital, she said, “The Labor Department is using every resource currently at our disposal to put a stop to H-1B visa abuse, and for the first time, I am personally certifying investigations into suspected violations to better protect American jobs.”

She added, “Under the leadership of President Trump, we will continue to invest in our workforce, ensuring high-skilled job opportunities go to American workers first.”

The investigations, part of a broader federal push to protect American jobs, are looking into violations such as underpayment of wages, non-existent work sites, and benching, a practice where H-1B employees are left unpaid between projects.

In a post on X, the Labor Department said, “As part of our mission to protect American jobs, we've launched 175 investigations into H-1B abuse,” adding that the agency will continue “putting American workers first” under President Trump and Secretary Chavez-DeRemer’s leadership.

What is Project Firewall?

The DOL’s new enforcement initiative, Project Firewall, allows for proactive investigations even without formal complaints if there is “reasonable cause” to suspect a violation. The project expands the department’s authority to audit Labor Condition Applications (LCAs) and Public Access Files, two key compliance documents for H-1B employers.

The initiative involves close coordination with the Department of Justice, Equal Employment Opportunity Commission, and US Citizenship and Immigration Services, aiming to strengthen oversight and accountability.

Under Project Firewall, companies found in violation could face back-pay orders, fines, or even temporary bans on hiring through the H-1B programme.

Analysts say the initiative could significantly affect Indian IT and outsourcing companies, which account for nearly 72% of all H-1B visa holders. These firms may face more frequent audits and stricter scrutiny of wage and reporting compliance.

What did the probes reveal?

While the DOL has not disclosed details of the ongoing investigations, which involve more than $15 million in back wages, preliminary findings indicate several concerns. Some employers reportedly failed to notify US immigration authorities when H-1B workers were terminated, while others listed non-existent job sites or filed inaccurate job descriptions.

Investigators also found that some employers paid workers less than promised and copied generic job notices for American workers that did not match the roles listed in their filings. In some cases, H-1B employees were left unpaid during gaps between assignments, a clear violation of visa regulations.

According to the DOL, these findings highlight the need for stronger enforcement to ensure the visa system “safeguards the rights, wages, and job opportunities of highly skilled American workers.”