US Faces Allegations Over $1bn Immigration Fee Fraud

The United States government has come under scrutiny following allegations that it collected over $1 billion in immigration fees for services that were never delivered. The claims suggest that applicants, both within the US and abroad, paid for processing that has either been delayed indefinitely or not carried out at all.

The accusation was raised by policy analyst David J. Bier during a Senate hearing. He argued that existing immigration policies have effectively halted application processing while authorities continue to accept payments. Bier described the situation as potentially the largest fraud in the history of the US immigration system, alleging that fees were collected without corresponding services being provided.

These developments are linked to policies introduced under former President Donald Trump and implemented by immigration agencies. One such policy restricts entry and limits visa approvals for citizens of about 40 countries, including Nigeria, Iran, and Haiti. Reports indicate that many applicants are not informed of their ineligibility before attending interviews, leading them to pay non-refundable fees.

Another policy affects immigrants already residing in the US by freezing applications for benefits such as work permits and permanent residency. This restriction applies regardless of how long individuals have lived in the country and has no clear end date.

Additionally, the State Department has reportedly suspended immigrant visa processing for nationals from 75 countries, citing concerns that some applicants may depend on public welfare. Critics argue that US law requires individual assessments and does not support broad restrictions based on nationality.

The diversity visa lottery has also been impacted. Although applicants can still submit entries and attend interviews, visas are currently not being issued under the programme.

Altogether, these measures affect nationals from about 92 countries, which represent a significant portion of legal immigration to the United States. Estimates suggest that around two million applications have been stalled, impacting over 320,000 applicants abroad and more than 500,000 individuals within the US.

Immigration processes often involve multiple fees. For instance, sponsoring a spouse can cost approximately $2,675, covering petitions, residency processing, and work authorization.

Lawmakers have begun to express concern over the situation. Republican Senator John Kennedy said he was “shocked” by the reports. Bier has urged Congress to intervene, calling for the resumption of application processing and fair treatment of applicants regardless of nationality.