US probes nine universities on J-1 visas, pauses PERM at eight firms

What happened

On October 8, the Trump administration announced investigations into Harvard, Yale, Stanford, Brown, MIT, Caltech, the University of Pittsburgh, UC Davis and Arizona State over alleged misuse of J-1 exchange visas, The PIE News reported. According to Anthony D'Esposito, the Labor Department's inspector general, subpoenas have gone out. The outlet noted that the probes involve suspected wrongdoing, not proven fraud, and that the announcement does not change who qualifies for a J-1. Vice President JD Vance accused the schools of using the visas "to undercut the wages of American grad students and American researchers" and cited a $20,000 pay gap without giving a source. MIT said each of its J-1 holders had been vetted by the US government. Stanford said it would cooperate, and Arizona State said its hiring follows US law.

The administration also suspended permanent labor certification, known as PERM, for eight employers: Adobe, Capgemini, Cognizant, HCL Technologies, Infosys, Microsoft, Tata Consultancy Services and Wipro. PERM is an early step in many employer-sponsored green card cases. Labor Secretary Keith Sonderling said both new and pending applications tied to these companies would not be processed. The suspension does not cancel H-1B visas or stop every green card category.

Microsoft said 80% of its H-1B filings in the last fiscal year were extensions or status changes for current staff. TCS told Reuters it expects no impact on its workforce strategy, citing single-digit PERM filings over two years. The news follows an October 7 proposal to charge universities $70,000 for each student recommended for Optional Practical Training (OPT), plus $30,000 a year for extensions.

What this means for job seekers

According to The PIE News, immigration lawyers warned that international graduates at the eight affected companies who are close to the usual six-year H-1B limit, and who have no earlier green card filing, could be hit hardest. J-1 researchers at the nine universities keep their current eligibility, but they may want to stay alert to requests from their institutions.

Practical steps: If you work at one of the eight companies on an H-1B, ask HR or the company's immigration counsel where your PERM case stands and how much time remains on your H-1B. If you hold a J-1 at one of the named universities, keep your program documents and DS-2019 current and check with your international scholars office before you change roles or travel. If you are a student planning to use OPT, follow the proposed fee closely and ask your school's international office how it might respond.