Federal inspectors found fraud or noncompliance at more than one in five H-1B worksites they checked in extension cases, findings the Trump administration cites in its push to tighten renewal reviews.
The Department of Homeland Security reports a 22.39% combined rate during fiscal years 2022–2025, compared with 16.77% in 2018–2020. The figures cover administrative and targeted inspections tied to extensions, rather than the entire H-1B population.
DHS argues that giving earlier approvals special weight can let errors and fraud carry forward. Its October 14 proposal would end that requirement. The agency acknowledges that other factors may have contributed to the inspection differences.
Why past approvals matter
Under the current regulation, U.S. Citizenship and Immigration Services generally defers to an earlier eligibility decision when a new Form I-129 petition involves the same parties and underlying facts. Officers can depart from that decision for a material error, a material change or new adverse information.
Employers must already submit evidence that a worker maintained legal status when seeking an extension or amendment. The regulation lists pay stubs, tax records, contracts and work orders among the possible supporting documents.
The Biden administration codified deference in its December 2024 modernization rule, which took effect January 17, 2025. The policy originated in 2004; USCIS rescinded it in 2017 and restored it in 2021. DHS defended codification in 2024 as a way to make decisions more consistent, efficient and predictable.
DHS now warns that a filer could exaggerate a worker’s role or pay, secure an initial approval and expect less scrutiny later. It also describes employers potentially withholding changes such as lost contracts or altered duties.
Attorneys at Duane Morris warned in an October 15 analysis that removing deference would make extensions less predictable and increase documentation demands. They advised employers to prepare extensions as complete filings that establish current eligibility, rather than relying primarily on an earlier approval.
Texas renewals already draw scrutiny
The Dallas Express previously reported on U.S. Rep. Chip Roy’s (R-Texas) demand for answers about Texas State University’s planned H-1B renewal for a public relations employee and its recruitment of American workers.
Texas State said in its August 20 statement that the filing concerned an existing employee, a university graduate who began full-time work in August 2023. The university said Texas Workforce Commission guidance excludes renewals from its written-approval requirement for new petitions.
That dispute concerned state approval requirements. The federal proposal concerns how USCIS evaluates eligibility, and does not establish wrongdoing by Texas State or its employee.
The reform remains open for comment
DHS will accept public comments through November 13 under docket USCIS-2026-0529. The existing regulation remains in effect while the agency considers the proposal.
“Petitioners and beneficiaries do not have a legitimate expectation that an erroneous or unsupported prior approval would continue to result in future approvals,” DHS wrote.
