A Republican lawmaker in the United States has introduced a bill that would dramatically raise penalties for H-1B visa fraud, with civil fines for the most serious violations jumping to as much as $250,000 and employer sponsorship bans extending to a minimum of 10 years. The legislation, if enacted, would represent the stiffest crackdown on H-1B abuse in the programme's history.

What the H-1B Visa Fraud Crackdown Act Proposes

Representative Beth Van Duyne of Texas introduced H.R. 10643, titled the H-1B Visa Fraud Crackdown Act, on Monday, 6 October 2025. The two-page bill is co-sponsored by Republican Representatives Brian Babin, Pat Fallon, Brandon Gill, Keith Self, and Pete Sessions, all from Texas.

Under the current framework, the maximum civil penalty for wilful H-1B violations — which can include misrepresenting the nature of a job or underpaying a visa holder — stands at just $5,000. The bill would raise that ceiling to $100,000. For violations that also involve the deliberate displacement of American workers, the maximum civil penalty would surge from $35,000 to $250,000.

'When a business can lie to the government and push American workers aside for cheaper labor, and the worst it faces is a $5,000 fine, many view that as the cost of doing business,' Van Duyne said. 'The H-1B Visa Fraud Crackdown Act changes the penalties. American jobs should go to American workers, and fraudsters should face real accountability for their actions.'

Longer Sponsorship Bans for Violating Employers

Beyond financial penalties, the legislation would significantly lengthen the periods during which employers found responsible for serious wilful violations are barred from sponsoring new H-1B workers. The minimum ban would rise from two years to five years for serious wilful violations. Where those violations also involve displacement of US workers, the minimum ban would escalate from three years to 10 years.

Sharply Higher Fines for Immigration Document Fraud

The bill separately targets immigration document fraud. Penalties currently ranging from $250 to $2,000 per document would increase to between $1,000 and $10,000. For repeat violations following a prior order, fines would jump from the existing $2,000–$5,000 range to between $20,000 and $50,000 per document.

North Texas Fraud Allegations Behind the Push

Van Duyne linked the legislation directly to a concentrated pattern of alleged H-1B fraud in North Texas. According to her office, Homeland Security Secretary Mullin confirmed that as of June, nearly 60 per cent of all H-1B employer fraud investigations nationwide were concentrated in the North Texas region — a striking geographic skew that underscores the scale of the alleged problem.

Van Duyne's office further stated that Labor Department Inspector General D'Esposito visited North Texas in August and found nearly 500 instances of likely H-1B visa fraud within a single building, with no one answering doors at addresses where H-1B applications had been approved. Notably, those figures were presented by Van Duyne's office and were not contained in the text of the legislation itself.

'American workers should not lose opportunities because an employer is willing to break the law to get cheaper labor,' Van Duyne added. 'If a business decides it makes more economic sense to break the law and kick American workers to the curb, they should feel major pain for undercutting our economy and our hardworking employees.'

What Happens Next

The H-1B Visa Fraud Crackdown Act remains proposed legislation and has not become law. For the higher penalties to take effect, the bill would need to clear both chambers of the US Congress — the House of Representatives and the Senate — before being signed by President Donald Trump. This comes amid a broader political climate in which scrutiny of the H-1B programme has intensified, with enforcement activity and legislative proposals running in parallel. The bill's fate in a divided legislative calendar will be closely watched by American industry groups, immigration advocates, and Indian IT professionals who constitute a significant share of H-1B visa holders.