Posted originally on Jul 28, 2026 by Martin Armstrong |  

The H-1B visa program was sold to the American people as a narrow pathway for importing rare talent that supposedly could not be found in the United States. We were told these were the “best and brightest,” possessing exceptional skills needed to keep America competitive. That sales pitch has collapsed under the weight of fraud, corporate abuse, and government negligence.

Indian investigators seized nearly 100,000 counterfeit degree certificates and forged academic records linked to at least 28 universities. One institution allegedly issued more than 36,000 fraudulent degrees. Authorities are investigating whether some credentials were used to obtain jobs in medicine, nursing, engineering, and technology, including employment supported by H-1B visa applications.

The fraudulent packages allegedly included counterfeit university seals, fabricated transcripts, and forged certificates. Some degrees reportedly sold for as little as $1,400. The United States created a visa system that places enormous weight on educational credentials while often relying on foreign institutions and overwhelmed bureaucrats to authenticate those documents. Criminal organizations naturally recognized the weakness and industrialized the fraud.

Former U.S. Foreign Service officer Mahvash Siddiqui, an Indian-American who worked at the American consulate in Chennai between 2005 and 2007, described an extensive network of fraudulent documents and visa consultants. She estimated that 80% to 90% of the applicants she encountered across certain nonimmigrant visa categories were using the pipeline to enter the United States, obtain employment, and remain.

It is Siddiqui’s assessment based on the cases she personally encountered roughly two decades ago. It is not a current USCIS finding that 90% of all H-1B petitions are fraudulent. There is more than enough documented abuse to condemn the program without converting an eyewitness estimate into an official nationwide fraud rate.

The government’s own older compliance work was already disturbing. A 2008 USCIS assessment found fraud or technical violations in approximately 21% of the H-1B cases it examined. Among petitions involving workers with bachelor’s degrees, the violation rate was 31%. Computer-related occupations, which represented 42% of the sample, had a violation rate of 27%. That was not 90%, but one questionable case in five should have triggered an immediate overhaul.

The Department of Labor reportedly processed 6.9 million H-1B-related labor filings between 2015 and 2025. Around 70% involved workers from India and approximately 12% involved workers from China. A labor condition application is not the same as an approved visa, since one filing can cover multiple positions and not every certified position results in employment. Nevertheless, the volume reveals the scale of the pipeline corporations have constructed.

Indian nationals have accounted for more than 70% of approved H-1B beneficiaries consistently since 2019, up from around half during the early 2000s. There is nothing inherently wrong with hiring a qualified Indian engineer, physician, or scientist. The issue is whether employers are recruiting genuinely scarce specialists or using a government-created visa category to obtain workers who possess less bargaining power than Americans.

The statutory H-1B cap is 65,000 new visas annually, with another 20,000 positions reserved for applicants holding advanced American degrees. Universities and certain nonprofit research organizations are exempt from the cap. Renewals, extensions, and changes of employer also cause total annual approvals to greatly exceed the 85,000 headline limit. More than 400,000 petitions were reportedly approved in 2025 when continuing employment and other non-cap cases were included.

USCIS reported that 58% of approved H-1B beneficiaries in fiscal 2025 possessed a master’s degree as their highest qualification. The median compensation for approved beneficiaries was $120,000 in fiscal 2024. Defenders present these figures as proof that the system primarily admits elite workers.

Those aggregate numbers conceal how the program operates. An employee does not need to be a world-class innovator to qualify. The position generally needs to be classified as a “specialty occupation” requiring at least a bachelor’s degree or its equivalent. That definition includes thousands of ordinary corporate positions that Americans already perform.

The relevant question is not whether $120,000 sounds like a respectable salary. The question is whether an American with the same education, experience, and location would command more, and whether the foreign worker’s immigration status gives the employer leverage to suppress wages.

The Department of Labor admitted in March 2026 that existing prevailing-wage levels had “for too long” been set dramatically below the market rates received by many American workers, particularly recent graduates seeking entry-level STEM employment. The department proposed revising its wage methodology because the system had been distorted by employers using foreign labor to replace American workers at lower cost.

That is an extraordinary admission. The federal agency responsible for protecting wages acknowledged that the government’s own benchmarks enabled corporations to undercut Americans.

Employers are legally required to pay an H-1B worker the higher of the applicable prevailing wage or the actual wage paid to similarly qualified employees. Yet employers may select among several wage sources, rely on occupational classifications that do not accurately reflect the job, and assign positions to lower experience levels. A rule written to prevent wage suppression became a compliance exercise managed by lawyers and human-resources departments.

The program also ties the employee’s legal status to the sponsoring employer. This creates an imbalance that does not exist with an American worker. The visa holder may technically change employers, but the process carries legal, financial, and immigration risks. That worker is less likely to demand a raise, organize coworkers, report abusive conditions, or walk away from an unreasonable manager. Corporations are not merely importing labor. They are importing dependence.

The young American graduate cannot compete with that arrangement. He emerges from college carrying debt and is told that entry-level experience is required for an entry-level job. The company simultaneously claims it cannot locate qualified Americans and petitions the government for a worker whose ability to remain in the country depends upon keeping the sponsoring employer satisfied.

Representative Riley Moore cited an analysis of 2022 Census data finding that more than 11 million working-age Americans with STEM degrees were not employed in STEM occupations. Not all of those individuals are available, appropriately trained, or willing to relocate, but 11 million is incompatible with the blanket claim that America has exhausted its domestic supply of technical talent.

Corporations do not want to acknowledge a labor shortage of their own making. They want experienced workers at entry-level prices. They refuse to train American graduates, eliminate jobs during mass layoffs, and then insist that foreign recruitment is necessary because no suitable applicants exist.

This is especially offensive when a company dismisses thousands of American employees while simultaneously pursuing additional H-1B workers. If an employer is conducting mass layoffs in the same occupational categories, it should not be permitted to claim an immediate shortage of domestic labor without undergoing a serious investigation.

H-1B defenders always point to the genuine scientist, surgeon, or engineer performing advanced work. Those people exist, and America should welcome exceptional talent. But exceptional talent does not require a lottery dominated by outsourcing firms, ordinary corporate positions, questionable wage classifications, and document mills selling counterfeit degrees.

A legitimate high-skill program would prioritize compensation, experience, patents, advanced research, independently verified qualifications, and demonstrable scarcity. It would not select applicants randomly after allowing employers to define their own need. A wage-ranked system would immediately expose whether companies truly require rare talent or merely want cheaper labor.

Every academic credential submitted from abroad should be verified directly with the issuing institution and cross-checked against accredited databases. Employers using fraudulent applications should lose access to the program, face substantial financial penalties, and be required to compensate displaced workers. Visa brokers and staffing companies caught submitting forged records should face criminal prosecution rather than another administrative settlement.

Congress should prohibit companies conducting large domestic layoffs from obtaining new H-1B workers for comparable positions during a defined cooling-off period. Employers should also be required to disclose the number of Americans displaced, the wage offered to the foreign worker, the prevailing-wage source used, and the precise reason no American could perform the job.

The visa should be portable enough that the worker is not effectively bound to one corporation. That would prevent employers from using immigration dependency as a weapon while forcing them to compete honestly on wages and conditions.

This is not an attack on Indians or any other nationality. Foreign workers did not write the legislation, establish the wage levels, or order American corporations to eliminate domestic jobs. The responsibility belongs to politicians who created the loopholes, agencies that failed to verify applications, universities that produced questionable credentials, brokers who monetized fraud, and corporations that learned how to manipulate the system.

Legal immigration becomes indefensible when legality is treated as nothing more than a stamped form. If the supporting degree is fraudulent, the labor shortage is fabricated, or the prevailing wage is deliberately understated, the process is not legitimate simply because a bureaucracy approved it.

America does not need to close itself to exceptional talent. It needs to stop confusing exceptional talent with cheap, controllable labor. The H-1B program was supposed to fill genuine gaps in the American workforce. It has instead become a mechanism that too often allows corporations to avoid investing in Americans while the government provides the replacement worker and calls it innovation.