The attorney general of Texas in the United States on Wednesday announced an investigation into instances of abuse of the H-1B visa programme in the state.
As part of the investigation, Attorney General Ken Paxton issued Civil Investigative Demands to three north Texan companies suspected of engaging in fraudulent activity.
H-1B visas allow companies in the US to temporarily employ foreign workers for special occupations.
Over the past few years, Indians have constituted the majority of H-1B visa holders. Indians comprised 72.3% of all H-1B visas issued by the US in the financial year 2022-’23.
The Texas governor said on Wednesday that, according to reports, the businesses under investigation likely engaged in illegal activities by setting up sham companies and advertising non-existent products or services in order to fraudulently sponsor H-1B visas.
“Any criminal who attempts to scam the H-1B visa program and use ‘ghost offices’ or other fraudulent ploys should be prepared to face the full force of the law,” Paxton said in a press release.
A day earlier, Texas Governor Greg Abbott had ordered an investigation into the H-1B visa programme in the state, and directed state agencies and universities to suspend new visa petitions under the programme, Reuters reported.
“In light of recent reports of abuse in the federal H-1B visa programme, and amid the federal government’s ongoing review of that programme to ensure American jobs are going to American workers, I am directing all state agencies to immediately freeze new H-1B visa petitions,” the news agency quoted Abbott as saying in a letter to state agencies.
The freeze will last until May 31, 2027, the Republican governor said, adding that exceptions will be allowed for cases where written permission is given by the Texas Workforce Commission.
State agencies were also given until March 27 to compile a report stating the number of new and renewal H-1B petitions had been submitted in 2025, the number of visa-holders sponsored, and their countries of origin and job classifications, Reuters reported.
The directions on Tuesday came amid US President Donald Trump’s intensified crackdown on immigration.
On September 19, Trump had signed an order requiring companies to pay $100,000 for each H-1B worker visa. However, two days after the rule came into effect, his administration clarified that the fee applies only to new applicants and does not affect current holders.
In December, Washington had said that it would expand the vetting of social media profiles to applicants for H-1B visas and their dependents from December 15. As a result, interviews of thousands of H-1B visa applicants in India were abruptly postponed by several months.
Later in the month, India stated that it had conveyed its concerns to the US about the cancellation of pre-scheduled interviews of Indian applicants for H-1B visas, adding that both sides were discussing the matter.
On December 23, the US Department of Homeland Security also said it had finalised amendments to regulations governing the H-1B visa selection process to favour workers who are higher-skilled and better-paid.
The new rules would take effect on February 27 and will be applicable for the financial year 2026-’27 registration period. The number of H-1B visas issued annually is limited to 65,000, with an additional 20,000 for US advanced degree holders.
The Trump administration said that replacing the lottery system of granting the visa with a process that gives greater weight to persons with higher skills will “better protect the wages, working conditions and job opportunities for American workers”.
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