The Labor Department’s inspector general, Anthony D’Esposito, announced Tuesday that two major U.S. technology firms—Cognizant and Cloudera—have had their Program Electronic Review Management pipelines and H-1B visa applications suspended.
D’Esposito conducted the action alongside acting Labor Secretary Keith Sonderling and the White House Fraud Task Force, revealing the move followed a nationwide investigation launched in July. Investigators gathered tips, executed search warrants, and interviewed victims and suspects to secure the suspension.
“Threats to American workers will NOT be tolerated,” said Sara Gonzales, the television host who co-hosted the announcement with D’Esposito. “Alongside the White House Fraud Task Force, we’re following facts, fraud, and finances. Handcuffs await.”
Gonzales highlighted Cognizant’s extensive history in Texas, noting that 41,571 H-1B visa beneficiaries were approved for the state alone in 2025 across 6,137 companies. The firm, identified as the top H-1B sponsor in Texas, recently faced a federal jury finding it discriminated against non-Indians and a Manhattan jury awarding $8.4 million for retaliation after an employee complained about “race and national origin discrimination.”
Cognizant’s spokesperson defended the company, stating: “We provide equal employment opportunities for all employees and have built a diverse and inclusive workplace that promotes a culture of belonging in which all employees feel valued, are engaged, and have the opportunity to develop and succeed.”
D’Esposito emphasized the suspension was merely the opening salvo. “It’s just the beginning,” he said. “This isn’t the end—we’re going to keep at it.”
Gonzales has a track record of uncovering H-1B fraud, previously collaborating with Texas Attorney General Ken Paxton on investigations that led to civil investigative demands against nearly 30 North Texas businesses. Paxton credited Gonzales for her efforts.
The Labor Department’s action follows years of scrutiny on Cognizant and Cloudera, which have filed over 11,000 labor condition applications in fiscal year 2025 and 3,510 H-1B approvals in fiscal year 2026. Despite recent announcements to hire only 1,500 U.S. college graduates in 2026, the firms have been prolific in visa filings.
D’Esposito concluded: “The fact is that these foreign labor visas, especially when abused and extorted, are taking good-paying, fair wages away from American people. That’s why acting Secretary Sonderling and I, under President Trump’s leadership, have made this a priority.”
