-1791357973960_v.webp)
- New H-1B Visa Fraud Crackdown Act introduced by Rep. Van Duyne.
- Proposed fines for serious H-1B violations increase to $250,000.
- Employer sponsorship bans extended to 10 years for severe breaches.
Amid President Donald Trump’s intensified crackdown over illegal immigration and visa fraud, the US has proposed tougher penalties for employers that break H-1B visa rules. A new bill introduced by Republican Representative Beth Van Duyne on October 1, seeks to increase fines for serious H-1B violations. It also includes proposals for extending bans on employers sponsoring H-1B workers and raising penalties for immigration document fraud.
New Bill Seeks Higher H-1B Penalties
The H-1B Visa Fraud Crackdown Act has now been referred to the House Judiciary Committee and has five Republican co-sponsors. The biggest proposed change is for serious violations involving the planned replacement of American workers. The maximum penalty would rise from USD 35,000 to USD 2,50,000. The minimum ban on employers responsible for these violations would also increase from three years to 10 years.
For some other intentional H-1B violations, the proposed fine would increase from USD 5,000 to USD 100,000. The bill also proposes higher fines for immigration document-related violations. Sharing details about the bill, Van Duyn wrote on X, “When a business can lie to the government and push American workers aside for cheaper labor, and the worst it faces is a $5,000 fine, many view that as the cost of doing business.”
She added, “I introduced the H-1B Visa Fraud Crackdown Act, to increase penalties for willful H-1B violations, extend minimum sponsorship bans, and strengthen fines for immigration document fraud. American jobs should go to Americans.
When a business can lie to the government and push American workers aside for cheaper labor, and the worst it faces is a $5,000 fine, many view that as the cost of doing business. I introduced the H-1B Visa Fraud Crackdown Act, to increase penalties for willful H-1B violations, extend minimum sponsorship bans, and strengthen fines for immigration document fraud. American jobs should go to Americans.
— Congresswoman Beth Van Duyne (@RepBethVanDuyne) October 5, 2026
| Violation Category | Current Penalty | Proposed Penalty | Current Minimum Ban | Proposed Minimum Ban |
| Serious Violations / Displacement of US Workers | USD 35,000 (approx. Rs 3.4 lakh) | USD 250,000 (Rs 2.4 crore) | 3 years | 10 years |
| Certain Other Wilful H-1B Violations | USD 5,000 (approx. Rs 4.8 lakh) | USD 100,000 (approx. Rs 96 lakh) | 2 years | 5 years |
| Document Fraud (Standard / Covered Category) | USD 250 to USD 2,000 per document | USD 1,000 to USD 10,000 per document | N/A | N/A |
| Document Fraud (After Previous Order) | USD 2,000 to USD 5,000 per document | USD 20,000 to USD 50,000 per document | N/A | N/A |
Will The Changes Apply Now?
Notably, the bill has not yet become law. This means the changes do not apply at this stage. However, the proposal has raised concerns as major changes have been made to the H-1B system in recent years. Some of the changes are as follows:
Major Changes To H-1B Visa System
Beneficiary-Centric Selection in 2024: In 2024, the H-1B registration system moved to a beneficiary-centric model. Under this system, selection is based on the individual applicant and doesn’t allow multiple registrations for the same person through different employers. The change aimed to prevent multiple registrations for one person to increase the chances of selection in the H-1B lottery.
USD 100,000 H-1B Processing Fee in 2025: In September 2025, the Trump administration introduced a one-time USD 100,000 employer-paid fee for certain new H-1B petitions including beneficiaries applying from outside the US.
Weighted H-1B Selection in 2026: Another major change was introduced in February 2026, in which the Department of Homeland Security finalised a weighted H-1B selection system to replace the random lottery. Applications now receive different weights based on the wage level of the job. Wage Levels I through IV receive one to four entries respectively, giving higher-paid positions a greater chance of selection.
Biometric and Compliance Fees in 2026: More recently, in August this year, the DHS introduced stricter 9/11 response and biometric entry-exit fee requirements for large technology and consulting employers with high numbers or ratios of H-1B and L-1 workers.
“On Aug. 10, 2026, DHS issued a final rule to amend regulations concerning the statutory 9-11 Response and Biometric Entry-Exit Fee for H-1B and L-1 Visas (9-11 Biometric Fee). The regulatory changes require petitioners that are covered employers to submit the 9-11 Biometric Fee for all H-1B and L-1 petitions,” the US Citizenship and Immigration Services (USCIS) stated in a press release.
You May Also Like To Watch: