Texas Attorney General Ken Paxton announced a comprehensive investigation into alleged abuses of the federal H-1B visa program in the private sector.
Paxton stated that his office issued Civil Investigative Demands to three North Texas businesses suspected of exploiting the visa program through fraudulent practices, marking the first major private-sector enforcement action following Abbott’s January 27 directive halting new H-1B petitions in the public sector.
🚨BREAKING: I'm announcing a sweeping investigation into H-1B visa abuse, starting with three North Texas businesses.
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. pic.twitter.com/FHuHCJh3iH
— Attorney General Ken Paxton (@KenPaxtonTX) January 29, 2026
In an accompanying press release, Paxton said his office is investigating whether the companies created sham operations to fraudulently sponsor foreign workers.
The attorney general’s office alleged the businesses may have used websites advertising nonexistent products or services and listed false office locations to obtain visas.
“Reports have indicated that the businesses under investigation have likely 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,” the release stated. It cited one example in which a company allegedly registered a single-family home as its office address while listing an empty, unfinished building as its worksite.
Paxton said his office demanded records identifying employees, detailing products or services offered, and documenting financial statements and internal communications related to company operations. “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,” Paxton said in the release.
The announcement came one day after Abbott ordered an immediate freeze on new H-1B petitions by state agencies and public universities, citing “recent reports of abuse in the federal H-1B visa program” and an ongoing federal review under President Donald Trump’s administration. Abbott directed agencies and universities to review existing visa use and submit detailed reports on current H-1B workers, The Dallas Express reported.
Abbott’s order followed heightened scrutiny of public-sector visa use after reporting revealed that Texas A&M University spent more than $3.25 million since 2020 on H-1B-related fees and processing costs, according to records obtained after months of public information requests and a pending complaint with the attorney general’s office, per The Dallas Express. That reporting also cited federal data showing hundreds of H-1B approvals at the university, including for positions with elevated domestic unemployment.
While Abbott’s directive applies only to public entities, Paxton’s investigation signals a parallel effort to scrutinize private employers.
Supporters of the H-1B visa program, such as Former Republican Presidential contender Vivek Ramaswamy, have argued that it is necessary because “American culture has venerated mediocrity,” and that foreign workers better fit the demands of American businesses, The Dallas Express previously reported.
However, the leadership of America’s leading labor organizations has long been critical of the visa.
“In fiscal year 2019, 60 percent of H-1B positions were paid at the lowest two levels, meaning they were paid below the median wage for the occupation and location,” the AFL-CIO’s 2025 H-1B fact sheet said.
Neither Paxton nor Abbott provided a timeline for concluding their respective reviews. Paxton said his office would continue to examine the H-1B program statewide, while Abbott said the freeze would remain in place through the end of the Texas Legislature’s 90th Regular Session on May 31, 2027.
