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This Week in Austin: AG Paxton announces investigations in H-1B visa program abuse

By Rita Cook
Correspondent
Texas Metro News

Ken Paxton
Credit: from Ken Paxton Attorney General official website

AUSTIN – Texas Attorney General Ken Paxton announced a sweeping investigation into H-1B visa program abuse last week.

A press release indicated this investigation would begin with three North Texas businesses.

The investigation is said to protect the integrity of the Texas workforce and ensure compliance with employment laws. 

The H-1B visa is a non-immigrant, employer-sponsored visa that allows U.S. employers to temporarily employ foreign professionals in certain jobs that require at least a bachelor’s degree. It is used most often in fields like IT, engineering, and science.

The visa is valid for three years but can be extended up to six years.

The H-1B visa is tied to a specific employer and position and changing jobs requires a new, approved petition.

The visa also includes a random lottery to select applications for 65,000 generally and a 20,000 master’s exemption.

The H-1B holders can also pursue permanent residence while they have this visa and spouses and unmarried children under age 21 can accompany the holder on H-4 visas, with some spouses eligible to work.

With those specifications in mind regarding Paxton’s investigations,he has issued Civil Investigative Demands (“CIDs”) to three North Texas companies suspected of engaging in fraudulent activity in this area, including “entities identified in videos that were widely circulated online,” according to a press release. 

Reports have indicated the businesses being investigated could have engaged in illegal activity to “scam the H-1B visa program by setting up sham companies featuring websites advertising nonexistent products or services to Texas consumers in order to fraudulently sponsor H-1B visas.”

An example given includes evidence suggested one of the businesses under investigation registered a single-family home as its office address and, on its website, listed its worksite address as that of an empty, unfinished building. These companies have allegedly sponsored numerous H-1B visas in recent years despite a lack of evidence that they provide any of the products or services advertised. 

“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,” AG Paxton said. “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.” 

As part of the investigation, Paxton has demanded documents identifying all employees working for these companies, records detailing the specific products or services provided, financial statements, and communications related to company operations of the three North Texas businesses. 

The coordinated actions involving this investigation coincides with a January 27, 2026, directive from Governor Greg Abbott freezing new H-1B visa petitions for state agencies and universities, also confirming taxpayer-funded jobs prioritize Texans. 

Abbott announced his investigation into the federal H-1B visa program directing all state agencies controlled by his office or any public institutions of higher education to freeze H-1B visa applications until the completion of the 90th state legislative session, which begins January 2027

The institutions will also be required to submit a report to the Texas Workforce Commission by March 27 with the number of H-1B visa holders the agency currently sponsors, any applications and renewals filed, the country of origin for the H-1B visa holder, and the visa’s expiration date.

Rita Cook is a world traveler and writer/editor who specializes in writing on travel, auto, crime and politics. A correspondent for Texas Metro News, she has published 11 books and has also produced low-budget films.

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