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By Billal Rahman
Immigration Reporter
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Texas Attorney General Ken Paxton has launched an investigation into allegations of H-1B visa fraud at three North Texas businesses suspected of illegal activity, according to a news release.
Why It Matters
H‑1B visas allow U.S. employers to hire highly skilled foreign workers in specialized fields, such as technology and engineering. The program has become politically charged as some hard-line supporters of the Make America Great Again movement argue that H‑1B workers displace American employees. However, moderate Republicans and many business groups support the visas as essential to innovation and economic growth. There is bipartisan agreement that reforms are needed to prevent abuse. Red states, including Texas, are increasingly cracking down on alleged H‑1B fraud.
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What To Know
The attorney general's office said civil investigative demands have been issued to the three companies to obtain records and documents tied to their operations, finances and employment practices.
State officials allege that the businesses may have created "sham" companies and "ghost offices" to improperly sponsor H‑1B visas for foreign workers.
A business is said to have listed a single‑family home as its corporate office address while advertising a different, unfinished building as its worksite on public materials, according to the news release.
"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 statement.
The investigation appears to be in its early stages, and no criminal charges have been publicly filed. The three businesses under scrutiny have not been named by the attorney general's office.
Meanwhile, Texas Governor Greg Abbott has ordered a freeze on new H-1B petitions through May 31, 2027, while Florida Governor Ron DeSantis has directed the state's Board of Governors to end H-1B hiring at public universities.
The move aligns state policy with federal efforts under the Trump administration to tighten the skilled-worker visa program, including imposing a $100,000 fee for certain petitions in September. H-1B visas, long a target for critics of work-based immigration, are used across the higher education, health care and technology sectors.
In November, Trump said companies building major U.S. semiconductor plants would need to bring in thousands of skilled foreign workers, calling their presence essential to keeping the projects on schedule.
Speaking at the U.S.-Saudi Arabia Investment Forum in Washington, D.C., Trump said welcoming H‑1B visa holders was MAGA, arguing that these workers filled specialized roles that could not be sourced from the domestic labor pool. The move sparked backlash from his base.
What People Are Saying
Attorney General Ken Paxton said in a news release: "Abuse and fraud within these programs strip jobs and opportunities away from Texans. I will use every tool available to uproot and hold accountable any individual or company engaged in these fraudulent schemes. My office will continue to thoroughly review the H-1B visa program and always work to put the interests of Americans first."
What Happens Next
The investigation into allegations of H-1B visa fraud at the three businesses is ongoing. Paxton's office has demanded detailed records identifying all employees, descriptions of the companies' products or services, financial statements, and internal communications.
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