crackdown

White House targets Stanford, Caltech and tech giants in visa crackdown

The White House is expanding its campaign against international workers, targeting elite study and work visa holders with restrictions and a new investigation.

On Thursday, the Trump administration announced a probe into whether Stanford, Caltech, UC Davis and other universities across the country have been abusing a special visa used by international scholars and students to do research and work in the U.S. It is also suspending Microsoft, Adobe and six other tech companies from how they sponsor employees who are in the country under a highly skilled worker visa program.

The White House’s concern is that schools and companies are too quick to bring in people from outside the U.S. The moves rattled Silicon Valley executives and California educators who see easy access to the smartest, hardest-working people in the world as one of America’s greatest competitive advantages.

Vice President JD Vance said the universities being investigated are overusing J-1 visas to bring in students and researchers from abroad. The international scholars then take jobs and grants that could go to Americans.

“They are using these visas way too much,” he said. “They are using them to undercut the wages of American grad students and American researchers, and it simply has to stop.”

Harvard, Yale, Brown, the University of Pittsburgh, Arizona State and MIT will also be investigated.

Labor Department Inspector General Anthony D’Esposito said subpoenas have been served and “nobody will be getting a free pass because their name is carved into an expensive building.” Many universities have buildings named for foreign donors.

While most of the companies targeted for the tech visa restriction were Indian, Vance called out Microsoft.

“There’s been no company, unfortunately, in the United States that has abused this system more than Microsoft,” Vance told reporters at a White House news conference.

Vance said the company has abused the permanent labor certification program, which he argued has enabled Microsoft to hire international talent that is then paid less to replace American workers.

The new development suspends Microsoft from applying for green cards for workers who come to the U.S. on H-1B visas and later apply to become permanent residents.

American technology giants have relied on the H-1B visa program for decades to bring in thousands of skilled foreign workers they cannot find locally. Critics have accused the program of being riddled with fraud and abuse.

The administration’s power move came the same day President Trump awarded the National Medal of Technology and Innovation to two prime examples of international talent who came to the U.S. on student and work visas: Microsoft Chief Executive Satya Nadella and Tesla’s Elon Musk.

Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL and Capgemini were also on the list of companies that will no longer be able to apply for permanent residence status for their H-1B employees.

Microsoft defended the use of H-1B and said in a statement that it looked forward to sharing additional information with the administration. In a post, it said that of the thousands of H-1B visa applications it submitted in the last fiscal year, 80% were to extend or change the status of existing Microsoft employees.

“They equal only 1% of our U.S. workforce. They are not new arrivals to our country,” the company said. “Microsoft only files H-1B petitions for those who meet the rigorous standards of this visa category.”

There’s a limit of 85,000 H-1B visas issued in a fiscal year, and they are selected through a lottery system. Last year, Microsoft was the third-largest beneficiary of the program, with 6,258 H-1B visas, according to data from U.S. Citizenship and Immigration Services. Amazon led the list, employing more than 13,000 H-1 B visa holders; Adobe had 777 approved applications.

The Thursday announcement has sparked confusion among technology workers and companies. Immigration lawyers point out that the action is not a blanket suspension of green card applications for all employers, but a targeted enforcement freeze on the Permanent Labor Certification program for the eight named corporations.

Proponents of H-1B note that Silicon Valley’s biggest tech companies are founded or run by immigrants, and the efforts to thwart H-1B have already started stifling talent flow and startup creation.

“It’s only going to probably hurt some companies and hurt the best and the brightest that are coming here,” said Devashish Mitra, professor of economics at Syracuse University. “It’s like throwing the baby with the bathwater.”

The J-1 investigations follow other actions, making it more difficult for international students to come to U.S. campuses. This year, the Department of Homeland Security said it wanted to end a “duration of status” visa policy that lets students stay in the U.S. through the completion of their programs and limit stays to four years. A federal judge blocked the change, and the government is appealing.

The Trump administration has also proposed charging colleges $70,000 per student for Optional Practical Training, which lets international students work in their fields of study for a limited number of years after graduation. Students now pay about $500.

In a statement, a Stanford spokesperson said the campus “complies with all applicable visa laws, including those relating to J-1 visas. We will cooperate with the investigation.”

A UC Davis spokesperson said the university “carefully complies with all federal laws and regulations for visas and looks forward to working with our federal partners to confirm compliance.”

A Caltech spokesperson did not respond to a request for comment.

About 275,000 people started J-1 programs in 2025, down from 301,694 in 2024, according to State Department data. Trainees and temporary summer workers, such as au pairs and summer camp counselors, also use the visa to enter the U.S.

Most were not at universities, with a majority working summer jobs.

The Trump administration’s crackdown has started to dissuade students from coming to the U.S., with experts expecting a drop in their registration when data for 2025 are released next month.

New research scholars fell 27% from 2024 to 17,622, about half the 2015 total. Most new research scholars in 2025 came from China, followed by South Korea and India.

California drew the most research scholars, 3,211. It ranked second behind New York for all new J-1s in 2025, with 23,167.

The State Department vets applicants and approves sponsors. Research scholars can stay up to five years

Sarah Spreitzer, vice president and chief of staff for government relations at the American Council on Education, said she had found little information about what the new probes would cover. But she said the federal government already has tools “to identify fraud, both in the granting of the visa and then also tracking the person through the Department of Homeland Security.”

“I think that all of these things are focused on bringing fewer international students into the United States, and we have been seeing that impact,” she said, expecting “a huge drop in our international enrollment this year, given everything going on.”

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UBS $125M Fine Signals Crackdown on AML Gaps

A record fine on the Swiss bank highlights U.S. regulators shifting focus to fill anti-money laundering gaps.

This article appears in the October issue of Global Finance Magazine.

A record $125 million fine handed out to UBS by U.S. regulators in August could herald increased scrutiny of banks.

How banks react to stricter compliance with anti-money laundering laws will be key as U.S. foreign policy and enforcement go together.

“As sanctions and tariffs continue to define U.S. foreign policy, this trend will likely continue. The U.S. and European banks are intertwined the most with the global economy, so the probability of them being under increased scrutiny is likely,” said Salar Ghahramani, associate professor of business law and international law & policy at Penn State Abington.

The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) settlement resolves allegations made by the Securities and Exchange Commission, the Commodity Futures Trading Commission and the Financial Industry Regulatory Authority.

Johann Scholtz, senior equity analyst for Morningstar, suggests that the fine is a result of the market that the Swiss bank targets. 

“These banks are particularly exposed to the risk of fines and regulatory intervention just by virtue of their business model. Banking, politically connected individuals, banking high-net-worth people, I think it exposes them to particular risk from an anti-money laundering perspective,” Scholtz said.

The fines were for not sufficiently monitoring 61,500 foreign exchange transactions and not flagging suspicious activity. The record amount is partly because UBS Group AG was fined $14.5 million in 2018 for similar activities with regulators discovering that remedial action had not been taken. 

“The 2018 fine may have convinced the UBS board that they were standing on very shaky PR and legal grounds due to the previous track record, likely propelling them to agree to the terms of the fine,” added Ghahramani.

Outcome-Focused Compliance

Although there is no current political push to modify AML laws, the UBS judgement may constitute shifting priorities by U.S. regulators.

 “The direction of AML regulations in the U.S. seems that it’s becoming more outcome-focused and less of a tick-box exercise. They really want banks to prove that they have a robust system in place rather than just ticking boxes,” Scholtz said.

How can banks protect themselves? By updating their risk management systems to ensure compliance through internal audits. The technical description of UBS’ settlement was unduly specific. Blaming an error in AML surveillance data feeds, a lack of verification of account holder addresses, no reliable unique identifier to match transactions, an absence of any exception queue and errors in the Excel spreadsheet used for foreign exchange transfers

“The announcement brings closure to this legacy matter. UBS has cooperated fully with its regulators and has made significant investments to remediate and strengthen its AML program in line with leading industry practices,” A UBS spokesperson said. 

Nic Wirtz is a contributing writer based in Guatemala.

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Trump’s mail voting crackdown tests Postal Service leader who says he’s ‘not political’

Long before he was the top official at the U.S. Postal Service, David Steiner was a corporate executive surfing mid-oughts television when he came across Donald Trump on “The Apprentice.”

He was unimpressed.

“If that is leadership, if that’s what we’re telling people that our culture and our media portrays as leadership, we’re screwed,” Steiner, then the CEO of Waste Management, said during a 2007 speech at the University of Arkansas Clinton School of Public Service. “If that’s leadership, count me out.”

“And for God’s sake,” he added to laughter, “if I have to get my hair to look like that, if I have to do that to be a leader, you can definitely count me out.”

Nearly two decades later, Trump has migrated from reality television to the presidency. And onetime detractors — Vice President JD Vance, Secretary of State Marco Rubio and Sen. Ted Cruz of Texas, for example — now loyally execute his agenda.

Trump’s effort to use the Postal Service as a tool to reshape American elections is testing whether Steiner will follow a similar path.

Independent or a Trump ‘pawn’?

When Trump signed an executive order restricting mail ballots this year, Steiner moved quickly to finalize a rule implementing the measure, arguing he had little choice. But after the U.S. Supreme Court rejected the effort, Steiner told The Associated Press that work had stopped on one of the plan’s most controversial elements, a government portal for voter rolls.

He refused to endorse the Republican president’s order as sound policy, saying he was focused on implementation and letting the courts ultimately decide the matter.

“I don’t get to decide what rules that are put on us that I decide to accept or not accept,” he said. “We are an independent agency of the executive branch.”

The episode prompted fierce criticism of Steiner for allowing Trump to deploy an agency designed to be shielded from politics.

Jena Griswold, Colorado’s Democratic secretary of state, called him a “Trump lackey.” Nevada Secretary of State Cisco Aguilar, a Democrat, recently asked Congress to deploy observers to ensure postal workers can scan envelopes holding mail ballots without disruption, saying the Trump administration “has attempted to weaponize federal agencies to interfere in our elections, and the leadership at USPS is going along with it.”

Sen. Elissa Slotkin, D-Mich., accused Steiner of being a Trump “pawn” during a congressional hearing this summer. Dozens of congressional Democrats have pressed Steiner to reveal his interactions with the White House during the development of the mail ballot rule.

Some Republicans have joined in the criticism. Sen. Josh Hawley of Missouri, incensed by abandoned mail, called for Steiner’s resignation and introduced legislation to block him from receiving a bonus.

During a lengthy interview, Steiner seemed surprised at points by his reception in Washington. He insisted he wasn’t a “political person” and said he had no intention of stepping down despite the criticism. He dismissed heated congressional appearances as “theater” at odds with more substantive private interactions on Capitol Hill.

Steiner was chagrined, however, at the mention of his 2007 remarks on Trump, delivered well before he launched a political career. Steiner recalled speaking at the university but said he didn’t remember his comments, acknowledging a tendency to be “flippant.”

“That’s funny,” he said. “I don’t recall it.”

The White House didn’t respond to a request for comment on Steiner’s remarks or his stewardship of the Postal Service.

Steiner didn’t follow the traditional path to power in Trump’s Washington

The Postal Service dates to Benjamin Franklin, the first postmaster general, whose portrait and bust are displayed in Steiner’s office overlooking the Washington Wharf. The agency has more than 630,000 employees, dwarfing many Cabinet departments.

While the quickest way to top jobs in Trump’s Washington is often by writing big checks, the 66-year-old Steiner doesn’t appear to have followed that course. He has largely donated to Republicans but also gave to John Kerry’s Democratic presidential campaign in 2004. Unlike his predecessor as postmaster general, Louis DeJoy, Steiner was not a major GOP donor or Trump backer.

Born in Oakland, California, as one of eight children to a father who spent his career at Chevron, Steiner worked in corporate and securities law before moving to Waste Management in 2000. He became CEO in 2004 and ran the company for 12 years. He was also a longtime director at FedEx, where board chairman Brad Martin recalled him as “outcome oriented” and rarely political.

“He’s going to follow the rules. He’s going to follow the law,” Martin said. “I don’t recall us ever talking politics.”

By the time a headhunter contacted Steiner about the postmaster general job, he was largely removed from daily corporate life and initially demurred.

“I talked to my wife, and we both agreed I was happily retired,” he said.

He changed his mind, he said, during a visit to the beaches of Normandy, feeling a sense of civic duty.

Now at the Postal Service, he earns about $346,000 in annual salary along with a relocation bonus that amounts to half his salary, far less than the $17 million in compensation he earned during his final year at Waste Management. His current role is designed to exist one layer removed from the political process, reporting to a board of governors that is selected by the president and confirmed by the Senate.

He was hired in 2025 by a board that was made up of five members, three of whom were Democrats. All but one were appointed by President Joe Biden. That makeup could change as four Trump nominees — all Republicans — await Senate confirmation. Steiner can be fired only by the board.

Steiner said he first met Trump along with Commerce Secretary Howard Lutnick at the board’s urging after he was already selected as postmaster general. Since then, he described a minimal relationship with the White House.

“We don’t fly on the radar,” he said.

That is, until Trump revived his effort in March to crack down on mail voting. Steiner said he “wasn’t in on the development piece” of the order and first saw it about a month before it was signed.

“They gave it to us to say, ‘Have your lawyers look at it, and how do you operationalize it?’” Steiner said.

The portal spurred a massive development effort inside the Postal Service while some states criticized it as federal overreach. A whistleblower report released by Sen. Richard Blumenthal, D-Conn., argued the system was hastily built and riddled with errors, though Steiner said he was confident it could have been unveiled around Sept. 15.

“The heavy lifting was clearly, clearly the IT work,” Steiner said.

Challenges ahead for the Postal Service

Though the Supreme Court dispensed with the rule, the dynamics for the Postal Service don’t get easier.

The agency posted a $9 billion net loss last year, and Steiner has warned it could soon run out of cash unless Congress lifts a $15 billion borrowing cap. Political hurdles have prevented potential cost savings from cutting service or closing some post offices.

And while Trump’s executive order won’t take effect, the Postal Service will still play a critical role in this year’s elections. There are mounting concerns that mail ballots could be rejected for late postmarks. Steiner encouraged voters to get their ballots in a week before the election to avoid problems.

The Postal Service is a rare corner of government still viewed favorably with more than half of Americans, 56%, saying it was doing an “excellent” or “good” job in a Gallup poll conducted last year. That could change if the agency is seen as increasingly political.

Steiner, however, said Americans will judge the Postal Service by their experience of it.

“What they care about is when they get that wedding invitation after the wedding or when they send a package and it disappears,” he said. “If we want to have the trust of the American public, let’s be the best service provider. Everything else is noise.”

Sloan writes for the Associated Press.

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