A former U.S. congressman and economist has accused parts of the H-1B visa system of being “captured by industrial-scale fraud,” alleging that a single district in India received 220,000 H-1B visas in a year — more than double the national annual cap. This situation raises questions about the integrity of the H-1B visa system, its impact on the U.S. labor market, and the practices of outsourcing companies.

Understanding the H-1B Visa Program

The H-1B visa is a non-immigrant visa that allows companies in the U.S to get foreign skilled employers to fill in vacancies that require theoretical or technical expertise. It is particularly prevalent in sectors like IT, engineering, and healthcare. However, critics argue that certain companies have exploited the system by hiring large numbers of foreign workers at lower wages, undermining the job market for U.S. workers.

Each year, the U.S. government issues a limited number of H-1B visas (currently capped at 85,000 annually for new applicants), but in recent years, the number of applications has far exceeded the quota. This has led to concerns that the system may be misused, particularly by outsourcing companies looking to bring in cheaper labor.

Speaking on a recent podcast, Dr. Dave Brat claimed that the visa allocations from Chennai (Madras) consular district had exceeded far beyond the U.S. statutory limit of 85,000 new H-1B visas per year.

Brat warned that such arguably fraudulent inflows pose a threat to American workers, saying, “When one of these folks comes over and claims they’re skilled — they’re not, that’s the fraud. They’re taking away your family’s job, your mortgage, your house, all of that.”

These allegations echo earlier claims made by former U.S. Foreign Service Officer Mahvash Siddiqui, who served at the U.S. Consulate in Chennai between 2005 and 2007. In a recent interview, she alleged that up to 80–90% of H-1B applications from India involved fraudulent elements — including fake degrees, forged documents, and unqualified applicants.

According to Siddiqui, her team flagged systemic fraud at the Chennai consulate and even sent a dissent cable to the U.S. Secretary of State, but their concerns were dismissed under political pressure. She claimed the anti-fraud effort was labeled a “rogue operation” and shut down.

The Chennai consulate reportedly handles H-1B applications from multiple Indian states, including Tamil Nadu, Karnataka, Kerala and Telangana — regions known for their strong IT industry presence. In 2024 alone, reports indicate that this consulate processed approximately 220,000 H-1B visas and another 140,000 H-4 dependent visas.

The timing of these claims is noteworthy: they surface amid growing U.S. political scrutiny of high-skilled immigration, particularly as certain policymakers push for tighter control over visa programs like H-1B.

Supporters of the H-1B program argue that it helps address genuine talent shortages in specialized fields, particularly in science, technology, engineering, and mathematics (STEM). Critics, however, argue that unregulated expansion of the program — especially if fraud is involved — undercuts job prospects for native-born U.S. workers.

It is not yet clear whether U.S. immigration or diplomatic authorities will launch a formal investigation into the allegations raised by Brat and Siddiqui. The claims have reignited debate over how to balance the economic benefits of skilled migration against the need for transparency and regulation in visa issuance.

The issuance of 220,000 H-1B visas to a single district in India has brought the issue of visa abuse to the forefront of U.S. immigration and labor policy. While the H-1B program is designed to fill critical skills gaps in the U.S. labor market, it is clear that reforms are needed to ensure the system is not exploited for profit. As the debate over H-1B visas continues, the need for a more transparent and equitable system becomes increasingly urgent.

Keywords: H-1B visa, H-1B visa abuse, industrial fraud, outsourcing, U.S. labor market, visa reform, Indian H-1B visas, U.S. immigration policy, foreign workers, technology outsourcing, H-1B program reform.