US launches “historic investigation” into J-1 visa fraud at nine top universities, including Harvard, Yale, MIT

US launches “historic investigation” into J-1 visa fraud at nine top universities, including Harvard, Yale, MIT

ANI | Updated:Oct 09, 2026 01:01IST

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Washington DC [US], October 9 (ANI): The US Department of Labour on Thursday (local time) announced a “historic investigation” into alleged J-1 visa fraud involving nine major American universities, including Harvard, Yale, Stanford and MIT, alleging that the programme was being used to undercut the wages of American graduate students and researchers.US Vice President JD Vance, speaking at a press conference on fighting visa fraud, said the administration had identified nine universities that “merit an investigation” over their use of J1 visas. The universities named are Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, Arizona State University, and MIT.“One final announcement here because while we see a lot of H-1B visa fraud, we also see a lot of J-1 visa fraud. And this is where some of America’s most elite universities bring in foreigners again to undercut the wages of American residents,” Vance said.He said American graduate students and researchers employed by the universities earn about USD 20,000 more than individuals brought in under J1 visas.“And importantly, these universities are employing J1 visas for federally funded grants at a rate of about 61 per cent. The national average is 38 per cent. 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,” Vance said.Anthony P D’Esposito, Inspector General of the US Department of Labour, said subpoenas had been served and investigations were already underway.”Alongside my partner, Secretary Keith Sonderling, I am announcing a historic investigation into the J1 visa fraud involving nine major American universities. Pitt, Yale, Harvard, Stanford, Brown, UC Davis, Caltech, Arizona State, and MIT. Subpoenas have been served, investigations are underway, and nobody will be getting a free pass because their name is carved into an expensive building,” D’Esposito said.”Improperly used J-1 visa classifications to avoid employment obligations, exploit taxpayer-funded programmes and undermine American workers will not be tolerated,” he added.The announcement comes a day after the Department of Homeland Security proposed new fees for F-1 nonimmigrant students seeking to participate in Optional Practical Training (OPT), a temporary employment authorisation linked to a student’s field of study.Under the proposed rule, DHS would impose a USD 70,000 fee per F-1 student for initial OPT and USD 30,000 for any subsequent OPT. The department said the proposal was aimed at reducing the flow of cheap labour into the US, combating fraud and abuse, and protecting American workers.“Optional Practical Training was never meant to be a back door into the American workforce, a subsidy for cheap labour, or a prize for those who game the system,” a DHS spokesperson said.“DHS is upskilling OPT to require foreign students to justify their worth to employers. American workers should not have to compete against a program that has been turned into a pipeline for cheap foreign labour,” the spokesperson added.Under existing federal regulations, eligible F-1 students can participate in OPT if the employment is directly related to their major area of study. To participate, students must receive a recommendation from their designated school official (DSO) and apply for employment authorisation with US Citizenship and Immigration Services (USCIS).Eligible students can receive up to 12 months of OPT at each education level, while those with degrees in science, technology, engineering, or mathematics fields may qualify for an additional 24-month extension.DHS said the proposed changes followed fraud and abuse identified by the Student and Exchange Visitor Program, including problematic worksites and “pay-to-stay” visa schemes.Under the proposed rule, SEVP-certified schools would pay the fee before designated school officials recommend students for OPT in the Student and Exchange Visitor Information System (SEVIS) and before students apply for employment authorisation with USCIS. The proposed fee would apply when schools recommend an F-1 student for any type of OPT and would not be tied to a particular employer.Collected fees would be deposited in the US Treasury. DHS will accept public comments on the proposed rule from October 8 through November 9, while the Paperwork Reduction Act section of the proposal will have a separate 60-day public comment period.The latest action also follows a Labour Department move to suspend some of the world’s largest IT outsourcing companies from the Permanent Labour Certification Program, citing multiple active federal investigations.The companies named include Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, while US technology majors Microsoft and Adobe were also suspended from the programme.US Vice President Vance said the H-1B programme was intended to allow companies to bring in highly skilled foreign workers for positions that could not be filled by American workers, but alleged that the programme had become “rife with fraud”.Attorney General Todd Blanche said the action was intended to send a strong message to employers.“This announcement today should send and does send a strong signal to every single employer in the United States that the Trump Administration will not tolerate discrimination against American workers,” Blanche said.Labour Secretary Keith Sonderling said the department would not accept new <a href="https://jiuniversity.com/australia-new-rules-now-in-force-for-accompanying-dependants-and-onshore-student-visa-applications/” title=”Australia: New rules now in force for accompanying dependants and onshore student visa applications”>applications or process pending permanent labour certification applications involving the companies under investigation.“We will not accept any new or process any pending permanent labour certification applications involving these companies,” Sonderling said.He said the companies had collectively sought millions of foreign workers and received hundreds of thousands of H-1B visa approvals and permanent labour certifications.“Since 2009, just these companies alone have requested almost 3 million foreign workers. They received over 230,000 H-1 B visa approvals and over 100,000 permanent labour certifications; that’s hundred and thousands of jobs that were taken from American workers,” Sonderling said. (ANI)

Source: www.aninews.in