The Trump administration has launched investigations into nine US universities over alleged misuse of J-1 exchange visas and suspended a key step in employment-based green card applications at eight major companies, widening its crackdown on international talent.
Announced on October 8, the measures target universities’ employment of overseas researchers and companies’ ability to sponsor foreign workers for permanent residency. Officials allege that employers have used immigration programs to undercut American wages.
The universities under investigation are Harvard, Yale, Stanford, Brown, the University of Pittsburgh, the University of California, Davis, the California Institute of Technology, Arizona State University and the Massachusetts Institute of Technology.
Labor Department inspector general Anthony D’Esposito said subpoenas had been issued as investigators examine “whether foreign influence, improper financial relationships or visa abuse are compromising federally funded research”.
The investigations concern suspected wrongdoing, rather than established findings of fraud, and the announcement does not itself change J-1 eligibility.
The exchange visitor program allows overseas participants to temporarily study, teach and conduct research in the US through approved programs. It also covers educational and cultural exchanges beyond university campuses.
Vice-president JD Vance accused the nine institutions of using international researchers as cheaper labour.
“They’re using these visas way too much. They’re using them to undercut the wages of American grad students and American researchers, and it simply has to stop,” he said.
Vance claimed American graduate students and researchers earned about $20,000 more than J-1 workers, without citing a source for the figure.
Universities defended their compliance and the contribution of international staff. In statements reported by Politico, MIT confirmed it was reviewing a “very broad subpoena”, while Arizona State defended its hiring practices as compliant with US law.
“Each J-1 visa holder at MIT has been vetted and authorized to come here by the U.S. government, and we take seriously our obligations to follow U.S. law,” MIT spokesperson Kimberly Allen said.
Stanford said it would cooperate with investigators, while Yale said it would review the investigation documents once received.
They’re using these visas way too much. They’re using them to undercut the wages of American grad students and American researchers, and it simply has to stop
JD Vance, US Vice President
Green card pathway suspended
Alongside the university investigations, the administration suspended the processing of permanent labour certification applications involving Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
The process, known as PERM, is a preliminary step in many employer-sponsored green card cases. Employers must demonstrate that there are insufficient qualified, available US workers for the position and that employing a foreign worker would not adversely affect comparable US workers’ wages and working conditions.
“We will not accept any new or process any pending permanent labor certification applications involving these companies,” Labor Secretary Keith Sonderling said.
The suspension affects a pathway to permanent residency, rather than amounting to a blanket cancellation of H-1B visas or a halt to every green card category.
The pause could delay permanent residency plans for international graduates employed at the affected companies, with immigration lawyers warning that those nearing the usual six-year H-1B limit without an earlier green card filing could be particularly affected.
Microsoft disputed the administration’s characterisation of its recruitment, saying 80% of its H-1B applications in the last fiscal year concerned extensions or changes of status for existing employees. It also said H-1B staff receive the same pay as other workers in comparable roles.
The operational impact may vary between employers. TCS told Reuters it expected no impact on its workforce strategy or client engagements, noting that it had made single-digit PERM applications over the previous two years.
Pressure on study and work routes
The announcements follow an October 7 proposal to charge universities $70,000 for each international student they recommend for Optional Practical Training (OPT), plus $30,000 annually for extensions.
Separately, four higher education associations have challenged ICE’s revised interpretation of Curricular Practical Training (CPT) requirements, which they say excludes placements that are not compulsory for every student on a program.
The fixed admission limits remain blocked nationwide, with duration of status still in place as the government and plaintiffs face an October 9 deadline to outline their positions on the case’s next steps.
J-1 exchanges have also faced separate regulatory proposals. In July, the State Department proposed expanding its authority to terminate program participation, alongside changes intended to replace paper-based procedures with SEVIS workflows.
