Sen. Mike Lee Intensifies H‑1B Scrutiny Amid Walmart Bribery Rumors

Senator Mike Lee is pressing for answers on the H-1B visa program after a summer of rumors linking Walmart to alleged bribery and improper hiring tactics. In August 2025, the Utah Republican called for a Senate Judiciary Committee hearing to examine whether large employers have gamed the system or encouraged fraud, naming Walmart in his public statements. As of August 25, 2025, there are no formal charges against Walmart, and federal authorities have not confirmed any active criminal investigation. Walmart has denied wrongdoing and says it has opened an internal review.

The political heat on the H-1B system arrives during a year of major rule changes, fierce public debate, and a policy reversal that could push many children of H-1B workers out of status when they turn 21.

Two major 2025 shifts at the center of the debate

At issue are two shifts in 2025 that affect employers and families differently:

• On January 17, 2025, the Department of Homeland Security rolled out a final rule aimed at cutting fraud and making the H-1B lottery more beneficiary-centric. The change gives each foreign worker only one lottery entry, regardless of how many employers register them.
• On August 8, 2025, the administration reversed a 2023 President Biden policy that had protected many H-1B families from children “aging out.” Now, a child’s age is locked only when a visa is actually available—not when paperwork is filed—raising the risk that young adults will lose status at 21 if their family is stuck in long green card lines.

Trigger for congressional scrutiny

The immediate trigger for Senator Lee’s action was a wave of Walmart-related claims that circulated in July 2025 on social media and in investigative reports. Those accounts suggested Walmart or its contractors offered improper incentives to speed or secure H-1B approvals. Walmart maintains it follows federal law and rejects the bribery allegations. The company’s internal review is ongoing, and no official findings have been released.

Lee’s move signals that Congress wants a closer look at the program’s guardrails, especially where large employers and staffing firms are concerned.

“Congress must dig deeper into how companies use the H-1B,” Senator Mike Lee has argued, seeking greater transparency and accountability.

Arguments on both sides

Supporters of stricter oversight say the H-1B visa should focus on high-wage, high-skill roles and close loopholes that let companies depress pay or replace entry-level U.S. workers. Critics warn that hardline rhetoric spreads fear and uncertainty among legally present immigrants—particularly Indian families who face long waits for green cards.

Political context matters: critics describe an anti-immigrant push by President Trump’s administration and MAGA-aligned lawmakers, who advocate for tighter limits or removing parts of the program. Business groups counter that H-1B helps fill skill shortages and keeps projects in the United States.

What the January 17, 2025 rule changed

Under the January 17, 2025 rule, USCIS changed how the H-1B cap lottery works:

• Previously, a candidate with multiple job offers could have multiple registrations, increasing their odds.
• The beneficiary-centric system gives each person one entry; if selected, only one employer may file the petition.

USCIS says the new setup reduces bulk registrations and suspected “gaming” by large staffing operations. Analysis by VisaVerge.com found employers became more selective about registrations and duplicate filings decreased.

Additional features of the modernization rule:

• Expanded access for entrepreneurs: Certain startup founders can qualify if a genuine employer-employee relationship exists and corporate controls prevent the founder from acting as sole boss and employee.
• Flexible specialty occupation standards: Some candidates can use alternative credentials or proven experience instead of a four-year degree.
• Stronger enforcement: Increased site visits and compliance checks to detect fraud and abuse.

The August 8, 2025 age-lock reversal and family impact

The August 8, 2025 reversal changed how children of H-1B workers are protected from “aging out”:

• Under the 2023 policy, some children had their age effectively locked earlier in the immigration process.
• The new rule locks age only when a visa becomes available, not when filings begin.

Consequences:

• Families from countries with heavy backlogs—India especially—face the highest risk.
• A child who turns 21 before a visa number becomes available can lose status and may need to leave the U.S. or switch to another visa type, such as an F-1 student visa.
• Legal experts expect potential court challenges; advocacy groups are already examining litigation options.

Proposed weighted selection and future rulemaking

USCIS has notified the Office of Management and Budget about a potential weighted selection process proposal. While details are pending, observers expect a system that might favor:

• Higher wages
• Advanced skills

Proponents say weighting would align with goals to attract the “best and brightest.” Critics worry it would disadvantage recent graduates and small businesses that cannot match Big Tech salaries. No timeline has been published.

Key program figures and 2024 context

• The H-1B cap remains 85,000 total:
  • 65,000 under the regular cap
  • 20,000 reserved for U.S. master’s or higher degree holders
• USCIS reported a sharp drop in duplicate or suspicious registrations after the beneficiary-centric system took effect.
• In FY 2024, top H-1B approval recipients included:
  • Google (5,300)
  • Meta (5,000)
  • Apple (4,000)
  • Intel (2,500)
  • Oracle (2,000+)
• Indians remained the largest group of H-1B recipients, with more than 200,000 visas issued in FY 2024 across programs, underscoring the program’s ties to tech and IT services.

Potential outcomes of Senator Lee’s inquiry

If the Senate Judiciary Committee proceeds, possible consequences include:

• Tighter reporting requirements
• Stronger penalties for fraud
• Limits on third-party staffing arrangements
• Or, if the committee finds the 2025 changes effective, Congress may defer to USCIS implementation rather than new legislation

For Walmart specifically, reputational risk is high. A Senate hearing would likely probe internal controls, vendor use, and audit trails for immigration filings. Other major employers will watch closely because any new rules would ripple across corporate HR departments nationwide.

How employers and workers are adapting

Employers:

• Must be more selective in registrations given the single-entry rule.
• Face higher compliance costs and more site visits.
• Smaller firms may benefit from a fairer lottery, but also face increased compliance burdens.

Workers and families:

• The lottery is fairer, but scrutiny on job levels and wages has increased.
• Entry-level roles may draw extra questioning about the need for a “specialty occupation” worker.
• Alternative credentials and portfolios can now help some candidates.
• Families must plan for backup options if green card numbers are slow to arrive.

Entrepreneurs:

• Startup founders can qualify if they create true checks and balances (e.g., an independent board that can fire them).
• Early-stage companies may now lawfully sponsor founders or key talent with careful structuring and legal planning.

Simple H-1B process (FY 2025–2026)

1. Employer registration: Companies register candidates during the USCIS window.
2. Beneficiary-centric lottery: Each person is entered once.
3. Selection notice: USCIS notifies selected beneficiaries; only one employer may file.
4. Petition filing: The employer files Form I-129 with evidence. The official form is here: https://www.uscis.gov/i-129
5. USCIS review: Expect more site visits and compliance checks.
6. Decision: If approved, the worker may start on or after October 1.
7. Cap-gap: F-1 students with pending H-1B petitions may keep working until April 1 of the next fiscal year.

For official guidance and updates, USCIS maintains an H-1B program page with basics, eligibility details, and rule updates: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations

Human stories that illustrate policy effects

• A candidate with multiple offers: Previously benefited from multiple registrations; now has one entry—less chance but greater fairness.
• A family with a college-bound child: Must prepare backup plans (e.g., F-1 status) with attendant costs and disruption.
• A startup founder: Can structure a company to meet the employer-employee test, but must plan carefully with lawyers and investors.

Likely paths forward

• Committee staff could recommend higher wage floors, tougher penalties for misrepresentation, or limits on outsourcing arrangements.
• If USCIS’s beneficiary-centric lottery and stepped-up site visits prove effective, Congress may refrain from immediate legislation.
• The weighted selection proposal is a wild card that could prioritize high wages and advanced degrees—helpful to some, harmful to others.

Practical guidance for employers and applicants

• Prepare early and gather strong evidence that a role requires a specialized degree or equivalent experience.
• Align job descriptions, resumes, and letters with the claimed specialty.
• When using alternative credentials, ensure they map directly to the job duties.
• Employers relying on contractors or third-party worksites should keep clean records and matching contracts for USCIS filings.

Final considerations

Public debate over H-1B will persist into 2026, especially given election-year politics. Some lawmakers favor expanding H-1B to compete globally; others want to retain or shrink the cap until wages and oversight improve. The most likely near-term result is more targeted changes through rulemaking, enforcement, and litigation rather than sweeping legislative reform.

Walmart’s response to the allegations could influence how other large employers manage public scrutiny: a clear internal review supported by thorough records can help stabilize a company during investigations. Whether the outcome is new laws or steadier enforcement, the stakes remain high for employers, workers, and families who depend on a program that balances opportunity and control.

Key takeaways:
– The January 17, 2025 DHS rule made the lottery beneficiary-centric and opened some new avenues for entrepreneurs.
– The August 8, 2025 policy reversal narrowed protections against “aging out,” raising serious family impacts.
– Senator Mike Lee has pressed for oversight amid unproven Walmart rumors; no charges have been filed as of August 25, 2025.
– A proposed weighted selection could further change who benefits from the H-1B system, with wide implications for employers, startups, and workers.