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Washington Freezes Green Card Sponsorship at Eight Major Employers and Subpoenas Nine Universities
The Trump administration has widened its campaign against what it calls visa fraud. It has suspended eight major employers from the labor-certification process that leads to green cards, and it has subpoenaed nine elite universities over their use of exchange-visitor visas. Vice President JD Vance announced both moves at a White House press conference on Thursday, October 8. As always, here, our EB-1A consultants have dived right into the details and nitty gritty of these green card sponsorship.
The big freeze
Microsoft and Adobe are on the list, along with six IT outsourcing firms: Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. The Labor Department will no longer accept new applications from them under PERM which is the first step in most employment-based green card cases. Pending applications will not be processed either. Labor Secretary Keith Sonderling cited ongoing federal investigations. He said the companies had sought nearly 3 million foreign workers since 2009, won more than 230,000 H-1B approvals and obtained over 100,000 permanent labor certifications.
Vance reserved his sharpest words for Microsoft. He said the company laid off about 6,000 American workers last year while obtaining 6,300 H-1B visas and nearly 3,000 green cards. In his arithmetic, that meant one and a half foreign hires for every layoff. He also accused companies of running token job advertisements to justify hiring “effectively foreign indentured servants”. When asked how long the suspensions would last, he said “as long as it needs to”.
The companies have also pushed back in reaction to the news. Microsoft said 80 percent of its H-1B filings last fiscal year extended or changed the status of current employees. The remaining filings were for people already legally in the country, which would equal about 1 percent of its U.S. workforce. It also said it pays H-1B workers the same as comparable colleagues. Tata Consultancy Services told Reuters it expected no impact and has filed only single-digit PERM applications in two years. India’s IT industry body Nasscom called the number of workers using PERM “relatively limited”.
A suspension, not a verdict
Samper Law’s analysis of the Labor Department’s regulations adds important context. Under 20 CFR 656.31(b), the department may suspend processing when it learns of possible fraud or willful misrepresentation. The suspension can last up to 180 days and can be extended until investigations end. It is not a finding of fraud. If none is found, pending applications must be decided on their merits. Debarment, a bar of up to three years, is a separate and later step, and none of the eight has been debarred. As of October 8, the Labor Department had published no written notice, and no company had been charged with a crime.
The university probes
The second announcement targeted the J-1 visa, which lets foreign nationals temporarily teach, lecture, research or train in the United States. The nine universities are Harvard, Yale, Stanford, Brown, the University of Pittsburgh, UC Davis, Caltech, Arizona State and MIT.
Vance said the schools use J-1 visas on federally funded grants at about 61 percent, against a national average of 38 percent. He added that American graduate students and researchers earn roughly $20,000 more than J-1 holders. The Harvard Crimson noted that he did not explain how the figures were calculated.
Labor Inspector General Anthony D’Esposito called the effort a “historic investigation” and pledged to “follow the money and uncover the schemes.” He said it will examine whether foreign influence, improper financial relationships or visa abuse are compromising federally funded research, with particular concern about China.
The universities have responded cautiously. Brown, Harvard, Pitt and MIT acknowledged receiving subpoenas. Stanford and UC Davis said they would cooperate. Arizona State said it complies with U.S. law, and Yale said it would review the documents once it received them. MIT described the subpoena as very broad and noted that the government already vets every J-1 holder. Brown said its international scholars make essential contributions to teaching and research.
Who would bear the cost
Immigration lawyer Lidice Samper says the workers most exposed are H-1B employees of the eight firms who are nearing the six-year limit without a green card filing. The rules allow one-year extensions if a labor certification was filed at least 365 days earlier. They allow three-year extensions for workers with an approved I-140 petition who are waiting for a visa number. A worker whose PERM case was never filed cannot now get one filed by that employer. Workers with approved petitions are in the strongest position, though Samper warns the action could widen (Samper, Samper Law).
Critics argue the policy undermines its own stated goal. Doug Rand, a former senior adviser at U.S. Citizenship and Immigration Services under President Biden, told the Associated Press the policy is “incoherent.” A green card, he noted, frees H-1B workers to change jobs and demand higher pay. Representative Pramila Jayapal said such attacks harm efforts to build a stable base of workers with legal pathways. Dinesh Pai of Zerodha warned that companies unable to bring talent to the U.S. may bring the work to India instead.
The wider numbers are sobering. New J-1 research scholars nationwide fell 27 percent last year to 17,622. NAFSA estimated that new international enrollment fell 17 percent in fall 2025, costing more than $1.1 billion. A separate report found spring 2026 enrollment down 20 percent. Harvard sponsored 2,218 new J-1 visitors in 2024, Stanford 1,436, Yale 1,169 and MIT 1,087.
A widening crackdown
The announcements follow a proposal by the Department of Homeland Security for a $70,000 fee on Optional Practical Training. Samper’s summary says schools would pay $70,000 for a first recommendation and $30,000 for each later one. In August, the administration floated a $103,265 fee. A $100,000 H-1B fee imposed last September was struck down in June by a federal judge who called it an unauthorized tax. Samper reports that a second court vacated the policies collecting that fee on September 30.
The Labor Department’s “Project Firewall” has opened nearly 200 H-1B investigations. The administration also wants to replace the H-1B lottery with a wage-weighted system and end the 60-day grace period for laid-off workers. Harvard is also fighting a separate attempt to bar its international students, and its lawyers have heard the White House may re-issue that ban if a court lifts its injunction.
At GCEB1, our EB-1A experts are tracking all the developments and updates in the US immigration landscape. Stay tuned to us to read the latest updates and analysis on policy changes. We wish you a safe and stress free immigration journey ahead.
Frequently Asked Questions
1. Which companies were suspended?
Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
2. What exactly is suspended?
Their PERM applications, the first step toward most employment-based green cards. No new filings will be accepted and pending ones will not be processed.
3. Does this affect existing H-1B visas?
The announcement concerns labor certifications. Existing H-1B status was not mentioned as affected, but long-term extension options depend on green card filings.
4. Has any company been found guilty of fraud?
No. Samper Law notes that a suspension is not a finding and that none of the eight has been charged or debarred.
5. Who is most at risk?
H-1B workers at these firms nearing six years without a PERM or I-140 on file.
6. Can affected workers change employers?
Yes. A new employer can start its own PERM, and an approved I-140 generally lets a worker keep the earlier priority date.
7. Which universities are being investigated?
Harvard, Yale, Stanford, Brown, Pittsburgh, UC Davis, Caltech, Arizona State and MIT.
8. Has J-1 eligibility changed?
No, but TIME reports the probes add uncertainty for visiting scholars and their host universities.
9. How long will the suspensions last?
Vance said “as long as it needs to.” Under the cited regulation, an initial suspension can run up to 180 days and be extended.
Sources & further readings
- Chiasson, Hugo C., and Elise A. Spenner. “Vance Announces Investigation Into Harvard, Eight Other Universities Over Alleged Visa Fraud.” Harvard Crimson, October 9, 2026. https://www.thecrimson.com/article/2026/10/9/vance-harvard-j1-visa-investigation/.
- Jeyaretnam, Miranda. “Trump Admin Freezes Green Cards at Major Tech Firms, Probes Student Exchange Visas.” TIME, October 9, 2026. https://time.com/article/2026/10/09/us-immigration-visa-fraud-green-card-h1b-j1-microsoft-adobe/.
- Knott, Katherine. “9 Universities Accused of J-1 Visa Fraud.” Inside Higher Ed, October 9, 2026. https://www.insidehighered.com/news/government/2026/10/09/9-universities-accused-j-1-visa-fraud.
- Samper, Lidice. “The Government Froze Green Card Sponsorship at Microsoft, Adobe and Six IT Firms. Here Is Who Is Exposed.” Samper Law, October 8, 2026. https://www.samperlaw.com/insights/immigration-updates/perm-suspension-microsoft-adobe-it-firms-october-2026.
