SUPPLEMENTARY INFORMATION:

The Secretary of State is authorized to promulgate such rules and regulations as may be necessary to carry out the functions of the Department of State. 22 U.S.C. 2651a(a)(4). The Mutual Educational and Cultural Exchange Act of 1961, as amended, authorized the Department of State (and the newly established Bureau of Education and Cultural Affairs) to carry out the purposes of and manage, coordinate, and oversee programs established pursuant to the Act. 22 U.S.C. 2451 et seq. The Department of State is proposing modifications to Subpart C of the Code of Federal Regulations, Title 22: Foreign Relations, Part 62—Exchange Visitor Program (Subpart C—Status of Exchange Visitors). Subpart C governs the status of nonimmigrant exchange visitors who travel to the United States on J-1 visas and their accompanying spouses and/or dependents, if any, who travel to the United States on J-2 visas. This proposed rule specifically addresses termination of program participation under 22 CFR 62.40, extension of an exchange visitors' program under 22 CFR 62.43, and reinstatement of exchange visitor records to valid program status under 22 CFR 62.45. The ( printed page 48022) status of any accompanying spouses and/or dependents mirrors the status of the exchange visitors they accompany. For purposes of this proposed rule, references to exchange visitor records include the records of accompanying spouses and/or dependents unless stated otherwise.

Subpart C was last modified in 1999, when the former U.S. Information Agency (USIA), which previously had oversight of the Exchange Visitor Program, issued an interim final rule with request for comment (64 FR 44123, Aug. 13, 1999). That rule replaced a prior policy statement published in the Federal Register on April 24, 1997. The 1999 regulations were developed for operation in a paper-based environment.

The Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA) directed the Attorney General to create an electronic system to collect information on F, M, and J nonimmigrants in response to concerns that such individuals could fall out of status and remain in the United States without authorization. In 2001, section 416 of the USA PATRIOT Act (Pub. L. 107-56) amended IIRIRA to mandate the expansion and implementation of that system. In January 2003, the Department of Homeland Security (DHS) and the Department launched SEVIS, a web-based platform for tracking and monitoring F, M, and J nonimmigrants throughout the duration of their participation in approved programs.

Termination of Program Participation

This proposed rule addresses the termination of exchange visitor program participation under 22 CFR 62.40. The proposed rule provides an additional basis for which a sponsor must terminate an exchange visitor's participation in their exchange program; namely, when an exchange visitor falsifies or fails to provide a full and truthful response, information, or documents as part of his or her exchange visitor application or during the ongoing exchange program.

The proposed rule also amends 22 CFR 62.40 to expand circumstances where the Department may exercise its discretionary authority to terminate exchange visitor program participation. Under the proposed rule, the Department may terminate an exchange visitor's status when the Department or DHS has revoked or cancelled a visa with immediate effect. In such cases, the individual must immediately leave the country or risk removal. The proposed rule also provides that the Department may terminate an exchange visitor's program when an exchange visitor falsifies or fails to provide a full and truthful response, information, or documents as part of his or her exchange visitor application or during the ongoing exchange program. For example, exchange visitors may be asked to provide proof of a U.S. address, educational qualifications, or attendance at the site of activity. Accurate information is necessary for the sponsors and the Department to assess whether exchange visitors continue to meet the conditions of their nonimmigrant status. A new procedure is also being proposed where an exchange visitor may challenge the Department's termination decision for unauthorized employment or falsifying information or documentation by submitting a statement in opposition within 10 business days of the Department's written notice. Exchange visitors may not appeal on the basis of hardship or other equitable considerations. These regulatory changes are intended to further support the program's objectives of ensuring visitor welfare, program integrity, and national security.

Extension of Program

The proposed replacement of 22 CFR 62.43 (Extension of Program) streamlines and clarifies the processes for extensions, both within and beyond the maximum program duration, by integrating these procedures with SEVIS functionalities. Sponsors currently have the authority to extend exchange visitor programs up to the permitted duration of the category of exchange programs. However, consistent with existing regulations, if exchange visitors are seeking to extend beyond the permitted maximum duration, sponsors must obtain Department approval. This rule proposes to establish a deadline for submitting such extension requests. After submitting the electronic application for extension in SEVIS, the Department must receive the supporting documentation no later than three months prior to the new extension period. There will be no exceptions for late submissions.

To ensure consistency across all program categories, this proposed rule deletes 22 CFR 62.31(o) extension of program under the Au pair category, which currently stateses: “Applications to the Department for extensions of six, nine, or 12 months, must be received by the Department not less than 30 calendar days prior to the expiration of the exchange visitor's initial authorized stay . . .” Under this proposed rule, extensions for au pairs will be governed by the general rules and timelines contained in the proposed 22 CFR 62.43, which will require submission 90 days prior to the expiration of the exchange visitor's program end date. These revisions align with Executive Order 14219 (“Ensuring Lawful Governance and Implementing the President's 'Department of Government Efficiency' Deregulatory Initiative”, 90 FR 10583, Feb. 19, 2025), which directs agencies to streamline obsolete regulatory provisions.

Reinstatement to Valid Program Status

The Department monitors the valid program status of exchange visitors in SEVIS. Designated sponsors must use SEVIS to validate initial program participation, report failures to begin programs, and indicate the early completion or termination of programs (22 CFR 62.13). Whether an exchange visitor completes their program ahead of schedule, voluntarily ends their participation, or has their program involuntarily terminated, sponsors must promptly update the exchange visitor's record in SEVIS to reflect this change and keep the status of the exchange visitor's SEVIS record up to date. This proposed rule revises 22 CFR 62.2 by adding a definition for “Valid Program Status” as the current and accurate status of an exchange visitor's SEVIS record from the time designated sponsors issue a Form DS-2019 through the visitor's active participation in an exchange program and including the visitor's final status upon completion, cessation, graduation, termination, or other program conclusion. The definition relates to any current or future status as contained in the SEVIS record: Initial, Active, Inactive, Terminated, Transferred, Invalid, and No Show. The proposed rule also adds a definition for “Unauthorized Employment,” aligning it with existing U.S. Citizenship and Immigration Services (USCIS) policy language. DHS administers and enforces the Immigration and Nationality Act (INA), as amended. Other federal and state agencies rely on SEVIS data to determine compliance with laws and regulations.

When SEVIS was implemented, designated sponsors transitioned from paper files to electronic reporting. Sponsors are required under 22 CFR 62.12(a)(2) to maintain accurate, current, and updated SEVIS records. They must also ensure that program participation matches the activities described in SEVIS and listed on the Form DS-2019 (22 CFR 62.10(d)).

Sponsors must report program status violations in SEVIS. When a record does not accurately reflect an exchange visitor's program status, whether through administrative oversight, ( printed page 48023) inadvertence, or neglect on the part of the sponsors, exchange visitors, or both, or due to unexpected circumstances beyond their control, the sponsor must either correct the record or request a reinstatement.

The current regulation categorizes violations into three types: (1) minor or technical infractions, (2) substantive violations, and (3) non-reinstatable violations. The proposed rule eliminates the distinction between minor or technical infractions and substantive violations, requiring that, within 30 days, sponsors fix an exchange visitor's record in SEVIS using the Correct SEVIS Status process for all but non-reinstatable violations. This proposed rule provides a simplified system to ensure data integrity by replacing the previous deadlines of 120 days for minor infractions and giving sponsors an easy way to ensure accurate SEVIS records without compromising the program or requiring Department approval. Thus, the “Correct SEVIS Status” action must be used when a sponsor mistakenly changes the status of an exchange visitor's SEVIS record to Active, Inactive, Terminated, Transferred, Invalid, and No Show due to administrative error, neglect, or circumstances beyond their control, or when the error is caused by system changes. The Correct SEVIS Status action must also be used if an exchange visitor fails to request a timely update, such as a transfer or program extension, causing their record to mistakenly reflect an incorrect status, or if a student fails to maintain a full course of study (as defined in § 62.2) without prior consultation with the sponsor and their academic advisor.

Sponsors will have 30 days from the date the SEVIS record went into the incorrect status to use the Correct SEVIS Status action to return SEVIS records to Active or Inactive status with no application or fee to the Department of State. There is no time limit for changing records from Invalid or Active status to Initial status if the exchange visitor has not entered the United States.

The “Correct SEVIS Status” action updates the status of the exchange visitor's record immediately. If the J-2 spouse and/or dependent's SEVIS record changed alongside the J-1, it will automatically update. If not, the J-2 record must be corrected separately. If a sponsor is unable to correct the SEVIS record using the 30-day window, a Reinstatement application must be submitted.

Previously, the Department would not consider requests made after 270 days, as such delays were seen as a lack of program continuity. In an effort to align with the policies provided by DHS, the Department will evaluate requests to reinstate exchange visitor records to Active status if the exchange visitor has not been out of status for more than the time period DHS has set (currently five months). If the exchange visitor has been out of status for more than the time established in DHS's policy, the Department will only consider requests where the sponsor can demonstrate that the failure to file was due to exceptional circumstances and that the request was filed as promptly as possible under those circumstances. There is no time limit for requesting a reinstatement to update a record to Inactive status.

Sponsors may not use the Correct SEVIS Status action or submit a Reinstatement application to update an exchange visitor's record to Active status if the exchange visitor:

• Did not maintain their original program objective identified under their category in22 CFR part 62 Subpart B (Specific Program Provisions);
• Failed to maintain required insurance coverage required by22 CFR 62.14;
• Was involuntarily suspended or terminated by sponsor or host organization;
• Received a favorable waiver recommendation under INA § 212(e);
• Received DHS approval for a change of status to a different nonimmigrant class of admission; or
• Failed to pay the fee mandated byPublic Law 104-208.

Reinstatement applications must be initiated in SEVIS and followed by submission of supporting documentation within ten (10) days to the Department. Sponsors must pay a non-refundable fee (listed in 62.17) and submit a written statement on official letterhead declaring:

• The exchange visitor's continued pursuit of the original program objective;
• That the lapse was due to oversight, inadvertence, or factors beyond the control of the sponsor;
• That denial would impose unusual hardship on the exchange visitor;
• That no unauthorized employment occurred; and,
• The exchange visitor's accurate program end date.

The proposed rule relocates and updates the definition of “Unauthorized Employment” to § 62.2. It mirrors the language found in Volume 7, Part B, Chapter 6 of the U.S. Citizenship and Immigration Services (USCIS) Policy Manual,^[1] which defines unauthorized employment as:

“[A]ny service or labor performed for an employer within the United States by an alien who is not authorized by the INA or USCIS to accept employment or who exceeds the scope or period of the alien's employment authorization.” ^[2]

For purposes of this rule, unauthorized employment does not include activities that are normally approvable and appropriate for the visitor's category ( e.g., honoraria for scholars giving lectures or consultations).

Regulatory Analysis

Administrative Procedure Act

The Department has historically determined that rulemakings regarding the Exchange Visitor Program involve a foreign affairs function of the United States and therefore are exempt from notice and comment (5 U.S.C. 553(a)).^[3] However, due to the Department's interest in seeking public comment on this rule, the Department is soliciting comments during a 60-day comment period, to which it will respond in a final rule, should the Department choose to finalize all or part of this proposal.

Unfunded Mandates Reform Act of 1995

This proposed rule will not result in expenditures of $100 million or more in any one year by State, Local, or Tribal governments, or by the private sector. It also does not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the Unfunded Mandates Reform Act of 1995. ( printed page 48024)

Executive Order 13175—Consultation and Coordination With Indian Tribal Governments

The Department has determined that this proposed rule does not have Tribal implications, does not impose substantial direct compliance costs on Indian Tribal governments, and does not preempt Tribal law. Accordingly, the requirements of Executive Order 13175 do not apply to this rulemaking.

Regulatory Flexibility Act/Executive Order 13272—Consideration of Small Entities

While the Department of State considers this rule exempt from the notice-and-comment provisions of 5 U.S.C. 553, and thus not subject to the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) or Executive Order 13272, we are nonetheless providing an assessment of the potential burden on small entities.

Terminations: The Department estimates that approximately 1,400 designated sponsors operate under the Exchange Visitor Program. The Department anticipates the benefits resulting in changes to the termination of program section will significantly strengthen operational transparency and effectiveness without imposing additional economic burdens on sponsors or exchange visitors, ultimately advancing the program's foreign policy objectives. Any changes resulting from this proposed rule impose no new net regulatory costs. Expenses related to an exchange visitor submitting a statement of opposition and the review process conducted by the Deputy Assistant Secretary for Private Sector Exchange are expected to be minimal and rare.

Analysis of Fee Impact for Extensions: Under the existing regulations, designated sponsors must obtain Department approval for program extensions that exceed the maximum duration allowed for a specific Exchange Visitor Program category. This process requires Department resources for review and adjudication. The fee associated with this request is designed to cover these administrative costs.

The current fee for filing an application for specific exchange visitor status changes is $367 per application (22 CFR 62.17(b)(2)). Based on program data provided for 2022 through 2024, the Department processed an average of approximately 14,563 “Program Extension beyond Maximum Duration” requests annually (calculated from 43,690 requests over three years). Applying the $367 fee results in an estimated total annual cost recovery of approximately $5,344,871 (14,563 requests * $367/request). This cost reflects the Department resources required to act on these requests, which involves verifying the justification for the extension against program regulations and participant eligibility. Unlike the reinstatement fee discussed previously (which designated sponsors can potentially avoid by maintaining timely updates to their records in SEVIS), this fee is required whenever a sponsor seeks an extension for an exchange visitor beyond the standard maximum program duration permitted by regulations for a category, necessitating Department review. The fee per request affects all designated sponsors submitting such requests, including small entities. The estimated total annual cost across all designated sponsors is noteworthy (~$5.34 million), driven by the high volume of extension requests (~14,563 annually).

Unlike the reinstatement fee, which applies to a much smaller volume of requests and may be avoidable, the extension fee applies to a more common request. While the cost per individual request may not be significant, substantial cumulative costs arise from numerous extension requests. The Department also acknowledges that the number of extension requests has remained relatively consistent from 2022 to 2024, with a nominal increase in requests in 2024 compared to the prior year. The Department cannot forecast how the volume of these requests may change in the coming years.

Benefits: A primary benefit of the fee is cost recovery for the U.S. Government, ensuring that the administrative costs associated with processing these requests are borne by the entities requesting the service rather than the public or appropriated funds. The fee also implicitly underscores the nature of extensions beyond the maximum duration, which still represents a relatively small proportion of the total exchange visitor population annually.

Conclusion: Based on recent data, the established fee for Program Extension beyond Maximum Duration requests, which is applied to an average of approximately 14,563 requests annually, results in an estimated cost recovery of approximately $5.34 million annually. This fee allows the Department of State to cover the administrative expenses associated with providing the necessary services for these specific extension requests made by designated sponsors on behalf of exchange visitors.

Analysis of Fee Impact for Reinstatements: Available data shows that only 21 formal reinstatement requests were submitted in 2024. Preparing an extension or reinstatement request typically requires 1 hour of administrative time, resulting in an estimated total annual cost of approximately $2,100 for all affected sponsors combined. This low volume and minimal administrative burden support the Department's determination that the economic impact of this rule on small entities is minimal.

The rule codifies existing SEVIS procedures, such as Correct SEVIS Status, that allow sponsors to fix most issues without Department intervention or fees. Fees only apply when designated sponsors fail to take timely action and reinstatement is necessary to correct SEVIS records.

The rule is structured to promote preventative compliance: sponsors who maintain accurate and timely SEVIS records will not incur new fees. This helps reduce the financial burden, particularly for smaller sponsors with limited resources.

This rule is also consistent with Executive Order 14192, Unleashing American Prosperity Through Deregulation, as it imposes no new net regulatory costs and codifies existing operational practices. The primary direct cost is the non-refundable fee for submitting reinstatement requests to the Department. This fee has consistently remained at $367 per application, as specified in the Exchange Visitor Program regulations at 22 CFR 62.17(b)(2). Program data from 2022 to 2024 indicates that the Department processed an average of 155 reinstatement requests annually (calculated from 465 requests over three years). Consequently, the estimated annual cost to designated sponsors for processing these requests totals $56,885 (155 requests * $367/request).

This proposed rule highlights the significance of quantifying costs and benefits, minimizing administrative burdens, aligning regulations, encouraging flexibility, promoting sponsor independence, and fostering self-reliance. The rule emphasizes the use of SEVIS, enabling designated sponsors to resolve many common record issues directly. This is expected to alleviate administrative burdens and save designated sponsors time when handling routine corrections. However, if designated sponsors fail to update records directly in SEVIS within designated timeframes, the sponsors must initiate the Reinstatement request in SEVIS and pay the non-refundable fee established under 22 CFR 62.17(b)(2). Reinstatement requests require review and processing by the ( printed page 48025) Department of State. The cost per sponsor will significantly depend on the number of reinstatement applications sponsors submit annually due to not utilizing the corrective actions available in SEVIS that do not require prior Department approval. Given the relatively low total number of these specific applications requiring Department involvement among approximately 1,400 designated sponsors, along with the general preventability of such requests through timely actions in SEVIS, the Department believes that the fee is unlikely to impose a significant economic impact on a substantial number of designated sponsors. A more detailed analysis comparing potential costs to designated sponsors' revenues would require data on sponsor size distribution and reinstatement request frequency by size, which is not currently available.

The Department recognizes that SEVIS functionality has evolved since it was first implemented in 2003. This rule reflects those developments and aligns the regulatory framework with current sponsor responsibilities and technological capabilities. To ensure clear and consistent program compliance, the Department intends to review and update relevant sponsor guidance as SEVIS tools continue to advance.

The regulations outline streamlined procedures (Correct SEVIS Status) that allow designated sponsors to address many record issues directly in SEVIS within specified timeframes without requiring Department intervention or a fee. The annual estimate reflects the expenses incurred by designated sponsors who seek Department action rather than a rise in costs for designated sponsors using SEVIS as intended. Furthermore, the Department acknowledges that reinstatement requests declined yearly from 2022 to 2024. As such, the Department of State does not make projections regarding potential changes in the number of requests in the coming years.

Benefits: The primary benefits include: (1) Increased efficiency and reduced administrative burden for designated sponsors managing routine record corrections in SEVIS; (2) Enhanced accuracy and timeliness of SEVIS data, resulting from streamlined correction processes and the incentive structure established by the fee, which supports program administration and oversight; (3) Cost recovery for Department resources utilized to resolve more complex reinstatement cases that exceed standard corrections; (4) Clear regulatory standards for designated sponsors regarding record maintenance and corrections; and, (5) Indirect benefits for exchange visitors, of resolving their status issues more efficiently, in contrast to potential adverse impacts on exchange visitors if designated sponsors fail to correct records promptly.

Conclusion: The Department of State believes the proposed approach maximizes net benefits. The anticipated advantages—including enhanced sponsor efficiency, improved SEVIS data integrity, clearer regulatory standards, Department cost recovery, and potentially quicker resolutions for exchange visitors—are expected to outweigh the potential costs associated with the fee for reinstatement requests, which require direct Department involvement.

Executive Orders 12866 and 13563—Regulatory Planning and Review

The Office of Information and Regulatory Affairs has determined that this proposed rule is significant within the meaning of section 3(f) of Executive Order 12866. The Department has reviewed this proposed rule to ensure consistency with the principles of cost-effectiveness, clarity, and regulatory flexibility described in these Executive Orders.

In 2024, over 1,700 individual exchange visitor records were terminated. The top reasons were for breaking sponsor rules or regulations (975), failure to continue program activities (300), disciplinary reasons or criminal convictions (90), engaging in unauthorized employment (30), and reasons listed as “other” (450). The proposed modernization of 22 CFR 62.40 strengthens program administration by allowing for efficient electronic recording, tracking, and documentation of termination decisions, resulting in greater accuracy and timeliness of data while supporting proactive compliance monitoring. The new regulations also provide sponsors and exchange visitors with increased operational and regulatory clarity, while formalizing the Department's discretionary authority in the exchange visitor termination process through the introduction of defined procedural requirements. There are no new costs involved for updating the functionality in the SEVIS database. Sponsors shall continue the same monitoring and documentation of exchange visitors as is already expected. Exchange visitors who are terminated by the Department will be accorded the right to challenge the Department's termination.

Executive Order 12988—Civil Justice Reform

The Department of State has reviewed this proposed rule in accordance with Sections 3(a) and 3(b)(2) of Executive Order 12988. The rule is written to minimize ambiguity, reduce litigation, and establish clear legal standards.

Executive Orders 12372 and 13132—Federalism

The Department has determined that this proposed rule does not have substantial direct effects on the states, on the relationships between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. In accordance with Section 6 of Executive Order 13132, the rule does not have sufficient federalism implications to require consultation or preparation of a federalism summary impact statement. Executive Order 12372, which governs intergovernmental review of federal programs, does not apply to this regulation.

Paperwork Reduction Act

Under the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), agencies must obtain approval from the Office of Management and Budget (OMB) for any new collection of information. This proposed rule does not impose any new reporting or recordkeeping requirements on sponsors, and therefore, does not require approval under the PRA.

Accordingly, 22 CFR part 62 is proposed to be amended to read as follows:

1. The authority citation for 22 CFR Part 62 is revised to read as follows:

Authority: 8 U.S.C. 1101(a)(15)(J), 1182, 1184, 1258; 22 U.S.C. 1431-1442, 2451 et seq.;22 U.S.C. 2451; Foreign Affairs Reform and Restructuring Act of 1998, Pub. L. 105-277, Div. G, 112 Stat. 2681 et seq.; Reorganization Plan No. 2 of 1977, 3 CFR, 1977 Comp., p. 200; E.O. 12048 of March 27, 1978, 3 CFR, 1978 Comp., p. 168; Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA) of 1996, Pub. L. 104-208, Div. C, 110 Stat. 3009-546, as amended; USA PATRIOT Act, Pub. L. 107-56, sec. 416, 115 Stat. 354; Enhanced Border Security and Visa Entry Reform Act of 2002, Pub. L. 107-173, 116 Stat. 543.

2. Section 62.2 is amended to add the following definitions, in alphabetical order:

Unauthorized employment: Any service or labor performed for an employer within the United States by foreign nationals who are not authorized by the Immigration and Nationality Act or the U.S. Citizenship and Immigration Services to accept employment, or who exceed the scope or period of their employment authorization. This definition also applies to accompanying J-2 spouses and/or dependents who perform such labor without prior Department of Homeland Security authorization.

Valid program status: The current and accurate status of an exchange visitor's SEVIS record from the time designated sponsors issue a Form DS-2019 through the visitor's active participation in an exchange program and including the visitor's final status upon completion, cessation, graduation, termination, or other program conclusion.

3. Remove and reserve paragraph (o).

4. Amend § 62.40 by revising it to read as follows:

5. Amend § 62.43 by revising it to read as follows:

6. Revise § 62.45 by amending it to read as follows:

91 FR 48021