TOI correspondent from Washington: In a move that underscores the MAGA v Moderate Republican politics in the US heartland, Texas Attorney General Ken Paxton on Wednesday announced a sweeping investigation into alleged abuse of the federal H-1B visa program, targeting what his office described as fraudulent schemes that disadvantage U.S.
workers. Paxton said his office issued Civil Investigative Demands (CIDs) to the three North Texas companies requiring them to turn over records related to their operations, employees, and visa sponsorship practices. The businesses, which are purportedly run by Indians according to local media reports, are suspected of creating “sham companies” and maintaining “ghost offices” in order to improperly obtain H-1B visas for foreign workers.
According to the attorney general’s office, some entities allegedly used misleading websites advertising products or services that do not exist, with the sole purpose of justifying visa sponsorships. “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 a statement, arguing that such abuse “strips jobs and opportunities away from Texans.
” His office also launched a public tip portal to solicit information on potential violations. As of this week, no charges have been filed, and the companies under investigation – which Paxton did not name – have not publicly responded. Local reports named two of the companies: Qubitz Tech Systems LLC, which reportedly has 13 approved H-1B visa employees; and 3BEES Technologies, with 27 H-1B visas approved between 2022 and 2025.Industry insiders say Paxton and the MAGA media are mischaracterizing a standard business model in the IT consulting world, where a "bodyshop" often has a small administrative footprint (sometimes a home office) because its workers are physically located at the offices of major clients (like banks or telecom giants). Several Indian IT companies, including TCS, Infosys, and Wipro, have large operations in Texas, employing thousands of workers, including native-born Americans.
But Paxton’s investigation seeks to prove some of the smaller, so-called "body shops" are not legitimate consulting firms but "sham" operations that exist to charge fees for visa sponsorship and offer “bench” services to clients while collecting part of the workers’ wages.The H-1B program allows US employers to hire foreign workers in specialty occupations such as technology, engineering, and medicine. While widely used by major employers, the program has long drawn criticism from labor advocates and immigration skeptics who argue it can be exploited to undercut domestic wages or replace US workers.
Texas ranks second only to California in the number of H-1B approvals, heightening the local political and economic stakes.Paxton’s move follows an executive directive issued by Governor Greg Abbott one day earlier, ordering state agencies and public higher education institutions to freeze new H-1B visa petitions until May 31, 2027. Affected agencies must report details on current visa holders to the Texas Workforce Commission by March 27, including job roles, countries of origin, visa expiration dates, and efforts to recruit Texans first.
The state actions mirror heightened federal scrutiny of the program. In September 2025, US Citizenship and Immigration Services and the Department of Labor launched coordinated fraud investigations, including the Labor Department’s “Project Firewall,” aimed at ensuring employers prioritize American workers and comply with wage and recruitment rules.While framed as an enforcement effort, Paxton’s investigation also unfolds against the backdrop of his Senate campaign.
Paxton is challenging John Cornyn, a four-term senator and former GOP whip, in the March 3, 2026, Republican primary. Paxton has cast himself as a hardline conservative aligned with “America First” priorities, repeatedly criticizing Cornyn as too moderate on issues such as US aid to Ukraine and immigration.Recent polling shows Paxton and Cornyn effectively tied, and with a third candidate, Congressman Wesley Hunt also in the field, there is the possibility of a May runoff if no candidate gets 50 per cent vote.
President Trump is yet to weigh in on the race. Taken together, the investigation and the Senate race underscore a broader struggle within the Texas Republican Party between MAGA-aligned insurgents and more traditional conservatives. The outcome could shape not only the party’s direction on immigration policy, but also Texas’s influence in national debates over labor, work visas, enforcement, and economic growth.
