JD Vance Announces Suspension of PERM for Tech Giants and J-1 Visa Probe of Elite Universities

At a press conference on October 8, 2026, Vice President JD Vance and Labor Secretary Keith Sonderling announced two coordinated enforcement moves. First, the Department of Labor will suspend the PERM labor-certification process for seven major technology firms—Microsoft, Adobe, Cognizant, Infosys, Capgemini, Tata, Wipro and HCL—preventing new or pending applications for permanent-resident status. Second, the administration launched an investigation into nine research universities for alleged J-1 exchange-visitor visa abuse. The universities named are Harvard, Yale, Stanford, Brown, University of Pittsburgh, UC-Davis, Caltech, Arizona State and MIT.

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

The PERM program is the first step for U.S. employers to sponsor foreign workers for employment-based green cards. The H-1B visa allows high-skill foreign workers to be hired for a limited period, while the J-1 program permits foreign scholars to conduct research or teach on temporary grants. Previous administrations have targeted perceived abuses, arguing they depress wages and displace American workers.

The Guardian

• Vance cited that Microsoft laid off 6,000 American workers in the prior year while receiving 6,300 H-1B visas and nearly 3,000 green-card approvals.

The Guardian

• He claimed that J-1 visa holders at the nine universities account for about 61 percent of federally funded research positions, versus a 38 percent national average.

Forbes

• Academic studies show that H-1B workers typically earn 6 percent higher salaries than comparable U.S. professionals, and that foreign STEM workers contributed 30-50 percent of U.S. productivity growth from 1990-2010.

Forbes

• Representatives from the targeted schools affirmed compliance with visa laws and pledged to cooperate with subpoenas.

Forbes

Legal analysts warned that the measures could chill high-skill immigration, arguing that discouraging legal immigration runs counter to the administration’s goal of winning the AI race.

JD Vance Targets Microsoft and Harvard: Is America Turning Against Legal Immigration?

• Microsoft’s data that 80 percent of its H-1B filings are extensions contradicts Vance’s implication that the company is using new H-1B visas to replace American workers.

The Guardian

• The methodology behind the 61 percent J-1 usage figure was not disclosed, and no independent audit of the universities’ J-1 allocations has been released.

Inside Higher Ed

• “Our message to Microsoft is, you’re a great American company, but you’ve got to hire great American workers,” — JD Vance, vice president

The Guardian

• “We will not accept any new or process any pending permanent labor certification applications involving these companies,” — Keith Sonderling, labor secretary

The Guardian

• “We will investigate whether foreign influence, improper financial relationships, or visa abuse are compromising federally funded research,” — Inspector General Anthony D'Esposito, Department of Labor

Reuters

• “What we see is when you employ an American worker as a graduate student as a researcher, they are making about $20,000 more than someone brought in under a J-1 visa,” — JD Vance, vice president

Forbes