The US Department of Labour has launched what it described as a historic investigation into alleged misuse of J-1 visas at nine leading American universities, including Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, Arizona State University and MIT.

Speaking at a press conference focused on visa fraud, US Vice President JD Vance said the administration had identified the universities as warranting investigation over their use of J-1 visas. He alleged that the scheme was being used to bring in foreign researchers and graduate workers at lower pay rates, thereby undercutting American workers.

Vance claimed that American graduate students and researchers employed by these institutions earn roughly ₹17 lakh more annually than individuals working under J-1 visa arrangements. He also alleged that the universities use J-1 visa holders on federally funded grants at a rate of about 61 per cent, compared with a national average of 38 per cent.

US Department of Labour Inspector General Anthony P. D'Esposito confirmed that subpoenas had already been served and investigations were underway. He stated that institutions would not receive special treatment because of their prestige and warned that improper use of J-1 visa classifications to avoid employment obligations, exploit taxpayer-funded initiatives and undermine American workers would not be tolerated.

The announcement follows a separate move by the Department of Homeland Security to propose substantial new fees linked to Optional Practical Training (OPT), a work authorisation route available to eligible F-1 international students.

Under the proposal, schools would be required to pay approximately ₹60 lakh for an initial OPT recommendation and around ₹26 lakh for subsequent OPT authorisations. DHS said the objective is to curb abuse, reduce dependence on what it described as cheap foreign labour and strengthen protections for American workers.

A DHS spokesperson argued that OPT was never intended to become a pathway into the broader American workforce or a mechanism for obtaining lower-cost labour. The department said it wants foreign students to demonstrate greater value to employers while addressing alleged fraud and exploitation within the system.

Current regulations allow eligible F-1 students to undertake up to 12 months of OPT related to their field of study at each educational level, while graduates in science, technology, engineering and mathematics disciplines may qualify for an additional 24-month extension.

DHS said the proposed reforms follow investigations by the Student and Exchange Visitor Program that uncovered fraud concerns, including problematic workplaces and alleged “pay-to-stay” visa arrangements. Fees collected under the proposal would be deposited into the US Treasury.

The department will accept public comments on the proposal between 8 October and 9 November, while a separate consultation process applies to the paperwork requirements.

The latest measures come shortly after the Labour Department suspended participation by several major technology and outsourcing firms in the Permanent Labour Certification Program due to multiple active federal investigations.

The companies named include Cognizant, Infosys, TATA Consultancy Services, Wipro, HCL and Capgemini. US technology firms Microsoft and Adobe were also suspended from the program.

Vance said the H-1B visa system was originally designed to allow employers to recruit highly skilled foreign talent for roles that could not be filled domestically, but alleged that the program had become rife with fraud.

US Attorney General Todd Blanche said the action should send a strong message to employers that the administration would not tolerate discrimination against American workers.

Labour Secretary Keith Sonderling announced that the department would neither accept new permanent labour certification applications from the companies under investigation nor process pending applications involving those firms.

According to Sonderling, the named companies have collectively requested nearly three million foreign workers since 2009, received more than 2,30,000 H-1B visa approvals and secured over 1,00,000 permanent labour certifications. He argued that these figures represent jobs that should have gone to American workers.

The developments mark a significant escalation in the Trump administration’s scrutiny of university visa programmes, international student work pathways and corporate foreign-worker recruitment practices, with investigations now extending across higher education and major global technology employers.

ANI