Labor Secretary Keith Sonderling said the department will neither accept new nor process pending permanent labor certification filings tied to the suspended companies, which also include IT outsourcers such as Cognizant. Officials cited alleged fraud and ongoing federal investigations, and Vice President JD Vance accused the firms of using H-1B and green card routes to replace American workers. The same Thursday briefing opened probes into nine universities, including Harvard, Yale and Stanford, over the J-1 exchange visa program. The move escalates a broader administration push against skilled worker immigration. Permanent labor certification is the first step for most employer-sponsored green cards, so the freeze stalls residency for staff already in the queue at these companies. Why it matters: AI labs and startups depend heavily on foreign-born researchers and engineers, many on H-1B visas. Founders should expect more scrutiny of sponsorship filings, longer timelines and more candidates weighing offers outside the US.