The development comes after Texas Governor Greg Abbott earlier directed public universities and state agencies to freeze H-1B visa petitions immediately. Texas Attorney General Ken Paxton on Wednesday announced a wide ranging investigation into alleged abuse of the H-1B visa programme and issued Civil Investigative Demands (CIDs) to three companies from North Texas which are at the centre of a broader inquiry of suspected fraudulent activity.
The development comes after Texas Governor Greg Abbott earlier directed public universities and state agencies to freeze H-1B visa petitions immediately.
Abbott had said that the H-1B visa programme has been used in a way that gives disadvantage to American workers. The suspension of the H-1B visa petitions will remain in effect till May 31, 2027.
🚨BREAKING: I'm announcing a sweeping investigation into H-1B visa abuse, starting with three North Texas businesses.
— Attorney General Ken Paxton (@KenPaxtonTX) January 29, 2026
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
In an official statement, Paxton said the three businesses under investigation may have set up “sham companies” with “ghost offices” and could be engaged in illegal activity to scam the H-1B visa programme.
“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. Abuse and fraud within these programs strip jobs and opportunities away from Texans,” Paxton said.
The CIDs issued to three suspected businesses require the companies to furnace documentations related to their operations, finances and employment practices. Texas officials believe that these firms may have been engaged in illegal activity designed to improperly obtain H-1B visas.
The Texas attorney general, as part of the investigation, 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.
The H-1B visa allows the United States companies to temporarily hire foreign workers in specialized roles. The programme has faced intense scrutiny from US President Donald Trump’s administration after a $100,000 application fee was introduced.
“My office will continue to thoroughly review the H-1B visa program and always work to put the interests of Americans first,” Paxton added.