Setting up a J-1 Sponsoring Agency

The J-1 Exchange Visitor visa program, operated by the U.S. Department of State, allows foreign nationals to pursue a specific objective in the United States while facilitating international exchange.

There are three (3) J-1 categories: J-1 Summer Work, J-1 Trainee and J-1 Intern. Each category has its own set of requirements and restrictions. The J-1 visa is not considered an “employment” visa and can only be sponsored by a State Department approved agency.

Based on business needs, some employers may opt to apply for approval as a sponsoring agency.

One major advantage to the J-1 program is that there is no requirement to file a visa petition with the USCIS. This provides for more certainty that the application will be approved. Processing the application (once approved as a program sponsor - discussed further below) is relatively quick - typically less than thirty (30) days.

The major disadvantages of the J-1 program are the application and reporting requirements for the program sponsor and the fact that the exchange visitors from certain countries are prohibited from acquiring H, L, or permanent resident status for two (2) years after participation in a J-1 program and must return to their home country (unless they obtain a waiver of the two (2) year home residence requirement). Individuals become subject to the home residence requirement if the skills they will acquire in the U.S. are listed on a “Skills List” maintained by the Department of State (”DOS”).

The first step in attaining exchange visitor program sponsor status is to formulate an exchange program and present it to the DOS for approval. The application must detail the proposed exchange program activity and demonstrate an ability to comply with the regulations. The application must also explain how the proposed training “is expected to promote mutual understand and improve communications between people in the U.S. and other countries through educational and cultural exchanges.” The application process takes approximately four (4) to six (6) months. Approval is discretionary, and the following general criteria would need to be satisfied:

  • The program must be a bona fide educational and cultural exchange program, and the specific purposes and objectives of the program must be clearly defined;
  • The program must provide for at least five (5) exchange visitors per year;
  • The program must provide cross-cultural activities for the exchange visitor;
  • The program must be reciprocal whenever possible;
  • The program must allow for a minimum stay in the U.S. for any exchange visitor of three (3) weeks;
  • Sponsor must provide information regarding its legal status, citizenship, accreditation and licensure;
  • Sponsor must show that it is financially stable an that it will be able to fulfill all of its financial duties related to the exchange visitor program, including the ability to provide return-trip airfare for the exchange visitors to the their home countries;
  • Sponsor must assure that the purpose of the program is not to fill staff vacancies and that the program will not adversely affect the U.S. labor market;
  • Sponsor must assure that every exchange visitor will be adequately covered with insurance while participating in the exchange program. Such insurance must provide coverage of $50,000 per accident of illness, cover for repatriation of remains of the $7500 and coverage for medial evacuation of the visitor to his/her home country of $10,000. Policies must be: (1) underwritten by insurance companies that have specified ratings; (2) backed by the full faith and credit of the visitor’s home country; (3) part of a group of health benefits program offered to employees; or (4 offered through or underwritten by a federally qualified health maintenance organization (HMO) or an eligible competitive medical plan (CMP) as determined by the Healthcare Financing Administration of the U.S. Department of Health and Human Services; and
  • Sponsor must provide full details regarding the selection, placement, orientation, evaluation and supervision of the exchange visitors.

Upon DOS approval of the application, the exchange visitor program would be designated for a maximum period of five (5) years. Sponsors could then apply for re-designation valid in five-year increments.

Sponsors are obligated to maintain up-to-date records with Immigration & Customs Enforcement (”ICE”) Student & Exchange Visitor Information System (”SEVIS”) program. This would include notifying all participants in the exchange visitor program that any U.S. address changes must be reported within ten (10) days of the change, verifying within thirty (30) days of a J-1 visitor’s start date that the participant has indeed begun his or her program. In addition, sponsors must submit annual reports to the DOS and would be required to retain records related to the program and exchange visitors for at least three (3) years.

Sanctions may be imposed for violations of DOS regulations. Penalties range from minor sanctions for less serious violations to revocation of program designation for the more serious ones. Lesser sanctions such as filing to timely file an annual report with the DOS or failure to adequately safeguard certificate of eligibility forms may result in receipt of a letter of reprimand, probation, imposition of a corrective action plan, or limit on the number of participating exchange visitors. Suspension for up to sixty days or revocation of program designation is reserved for serious willful violations that endanger the health, safety or welfare of a program participant.

Sponsors of an exchange visitor program must designate a Responsible Officer (”RO”) to act for the organization in administering the exchange program. ROs and Alternate Responsible Officers (”ARO”) must be citizens or permanent residents of the U.S. The RO would need to learn about the J-1 program, keep up with changes in the law, regulations and operating procedures.