U.S. Vice President JD Vance stated on Thursday that Harvard, Yale, Stanford, Brown, University of Pittsburgh, University of California, Davis, Caltech, Arizona State University, and MIT are bringing in foreign workers, which depresses wages for American residents. He indicated that his team believes these nine universities should be investigated.

He cited the J-1 visa as a point of concern. The nine universities use the J-1 visa in federal funding projects at a rate of about 61%, compared to a national average of about 38%. He claimed these schools use this visa to lower wages for American graduate students and researchers, stating that this practice must stop. He did not clarify how the 61% and 38% figures were calculated. Other reports suggest that American researchers in comparable positions earn about $20,000 more, with some examples cited showing differences of $20,000 and $48,000.

Labor Department Inspector General Anthony D’Esposito mentioned at the same press conference that subpoenas have been issued to the nine universities. The investigation will cover improper foreign influence, foreign funding relationships, and whether the J-1 visa is being used to evade hiring obligations, utilize taxpayer-funded projects, or undermine American workers. He stated that having a name on an expensive building does not exempt one from investigation. The J-1 visa is managed by the State Department and is used for exchange visits, including temporary entry for researchers and scholars.

The same press conference also announced that Microsoft, Adobe, and companies like Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini have had their permanent labor certifications suspended. Vance stated that this program treats foreign workers as contract labor and depresses American wages. As a result, Microsoft can no longer convert H-1B applications into U.S. permanent residency. Labor Secretary Keith Sonderling confirmed that new applications and pending applications from these institutions will no longer proceed under this program.

The list of nine universities includes private research universities, public universities, and polytechnic schools. Local media in Arizona have sought confirmation from Arizona State University. The Harvard Crimson reported this as a government investigation into potential J-1 fraud. The issuance of subpoenas does not imply that violations have been determined.

The buyers are laboratories that fill positions with J-1 researchers funded by federal project grants, while the sellers are American graduate students and postdocs who are said to have their wages depressed. The driving factors are the visa usage rates and subpoenas, not enrollment quotas. Funding remains within federal projects, but the entry of personnel is under scrutiny. The narrative of benefit is the domestic wages for comparable positions, while the pressure is on the nine universities' exchange visit hiring and the companies and contractors whose permanent labor certifications have been suspended.

Source: Public Information